IFC launches green bond on the JSE
Johannesburg, 10 December 2015
• First green bond to be issued on the JSE by a multilateral institution
• Listing raises R1 billion ($71 million) targeted towards renewable energy projects
• Builds on JSE’s commitment to supporting green financing for sustainable development
In a bid to assist the private sector address climate change through investments and innovative financing, IFC, a member of the World Bank Group, today issued its first rand denominated domestic bond on the Johannesburg Stock Exchange on its Primary Debt Market.
To celebrate the bond’s listing debut, Saleem Karimjee, IFC Country Manager for Southern Africa opened trading on the JSE alongside Donna Oosthuyse, Director Capital Markets at the JSE. “The listing of the IFC green bond is just one example of the JSE’s efforts to attract significant capital for funding and investment activities focused on mitigating the effects of climate change and financing sustainable development. Today’s listing illustrates the power of capital markets to facilitate funding for energy efficiency and renewable energy projects in emerging markets like South Africa,” said Oosthuyse.
Saleem Karimjee, said “IFC has a strong commitment to financing projects that have a positive impact on climate change. Green bonds are a powerful tool that is helping us rally international and domestic savings for climate finance”
IFC is the first multilateral organisation to list a green bond on the JSE and the fourth entity to list a bond dedicated to funding private sector investments focused on renewable energy and energy efficiency. The listing of the IFC green bond follows a similar and successful issuance of R 1.46 billion ($140 million) bond issued by the City of Johannesburg last year where the proceeds were used to fund green initiatives within South Africa's largest city.
The R1 billion nine-year IFC green bond was issued at a yield of 8.72%. Since 2010, IFC has raised funds for renewable energy and energy efficiency projects in other emerging market, such as India and China. As of November 2015, IFC had issued nearly $4.5 billion in green bonds globally.
ABOUT JSE Primary Debt Market
The Johannesburg Stock Exchange (JSE) is home to the most robust and largest primary debt capital market on the African continent, with a market capitalisation of R2 trillion. As such, South Africa’s primary debt capital market plays a crucial role in facilitating capital formation for the economy and economic development.
About the JSE
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 125 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. www.jse.co.za
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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