As one of the Top 20 largest exchanges in the world by market capitalisation ranked by the World Federation of Exchanges, the JSE provides Issuers with access to deep and liquid capital markets in a regulated and secure marketplace for over 130 years.
The JSE’s capital markets enable innovation, raising capital and shared prosperity. As a leading global exchange, the JSE co-creates and unlocks value through innovative products and services that meet the needs of our clients.
In addition to being the first stock exchange globally to introduce a sustainability index and to incorporate a move toward integrated reporting, the JSE once again paves the way towards a sustainable economy by introducing the JSE’s Transition Segment, a first for Africa. This segment enables companies to raise debt for green, social and sustainable initiatives on a trusted, global marketplace.
What is it?
The Transition Segment is a platform on JSE’s Main Board to list Transition Debt Securities, where issuers can raise funds for the climate or just transition-related purposes. Transition finance is expected to play a significant role in enabling a just transition and is of particular relevance to a carbon-intensive economy such as South Africa, in helping us achieve the national commitment to the Paris Agreement, and the associated goal of being net zero by 2050 within the context of our nationally determined contributions (NDC’s).
Who is it for?
Bonds are generally issued by governments, government agencies and relatively large private corporations (since the bonds are typically backed by the Issuer’s balance sheet). The JSE provides prospective Issuers with easy access to a deep capital pool in a well-regulated, robust market environment.
Investors benefit from easy access to globally-recognized socially responsible investment options, a high level of transparency and exposure to an increasingly important component of economic activity. Transition Debt Securities on the JSE’s Transition Segment are appropriate for consideration by institutional, professional and individual investors.
What are the requirements?
During the listing process the issuer can apply to have the issuance labelled as Transition Debt Securities. JSE Issuer regulation will assess whether the application complies with the Transition Segment Standard. The criteria for the Sustainability Segment are based on the following principles:
Transition Segment Standards: The listing of Transition Debt Securities (new issuance or framework) are granted subject to compliance with the Debt Listings Requirements and provided the debt securities are issued in accordance with the Transition Segment standards as supported by a complete review report .
Provide an external review: Applicant issuers must appoint an independent external reviewer with reference to the guidelines on external reviews.
Investors may trade in Transition Debt Securities in the same way as any other security.
Prospective Issuers must be registered clients of a JSE member.