The JSE is committed to building a stronger and more resilient green economy. The JSE’s green bonds unlock the investment potential of green infrastructure, technologies and services. Green bonds’ proceeds are exclusively used for the financing or re-financing of eligible green projects that have a positive environmental or climate benefit.
Who is this for?
With JSE green bonds, issuers raise the capital required to bring their green investments to life, while investors can satisfy critical environmental, social and governance (ESG) mandates and address climate-risks as a part of their portfolio construction.
All JSE green bonds are independently reviewed using various best practice methodologies that suit the issuer’s business model. Following this process, green bond issuers are afforded improved governance perceptions by market observers thanks to increased disclosure of proceeds.
The JSE applies flexibility and commerciality in its Green Bond Segment rules in the South African context. By developing clear criteria for what qualifies as a green bond, the JSE provides the market with trust and assurance around the environmental credentials of bonds.
The JSE is a member of the National Treasury’s Sustainable Finance Strategy workgroup with other finance industry representatives. We actively contribute to setting benchmarks and best practice for South African green financing.
How to join the JSE Green Bond Segment?
Once a green bond is listed on the JSE’s Interest Rate Market, an issuer can apply to be considered for the Green Bond Segment. JSE Issuer Regulation will assess whether the application complies with the green bond standard. The segment criteria are summarised below:
- Disclosure of proceeds
- Provide clear disclosure that proceeds will be used for financing or refinancing of new or existing eligible green projects that have a positive environmental and climate benefit.
- Provide an external review.
- An independent assessment on the use of proceeds, the selection process and management of proceeds is required. This can take the form of a second opinion, certification, verification or rating report by a qualified third-party.
- Commit to regular post-issuance reporting.
The first post-issuance reporting is required one year after listing a security and covers the actual use of proceeds and, if possible, the expected impact of the allocated projects against the key performance indicator and benchmarks disclosed when the bond classified as a green bond. How to get green bonds.
To access this product, register as a client with a JSE member.