The JSE is committed to help build a stronger, more resilient green economy. Green Bonds from the JSE help to unlock the investment potential of green infrastructure, technologies and services. The proceeds of Green Bonds are exclusively used for the financing or re-financing of new or existing eligible green projects that have a positive environmental and/or climate benefit.
Who is this for?
With JSE Green Bonds, issuers can raise the capital they need to bring their green investments to life, while investors can satisfy critical Environmental Social Governance (ESG) mandates and address climate-risks as a part of their portfolio construction.
All JSE Green Bonds are required to be independently reviewed using a wide array of best practice methodologies that suit the issuer’s business model. By virtue of this process Green Bond issuers are automatically afforded improved governance perceptions by market observers given the increased disclosure of proceeds.
The JSE subscribes to apply flexibility and commerciality in regard of its Green Bond Segment rules in the context of the South African economy, which aims to provide the green bond market with trust and assurance around the environmental credentials of the bonds, by developing a clear criterion for what qualifies as a green bond.
The JSE is also a member of the Sustainable Finance Strategy workgroup with National Treasury and other representative organisations from the finance industry. We are active contributors to setting benchmarks and context relating to green finance in South Africa.
How to join the JSE Green Bond segment?
Once a Green Bond is listed on our interest rate market, an issuer can apply to be eligible for the Green Bond Segment. JSE issuer regulation will assess whether the application complies with the Green Bond standard. The segment criteria are summarized on the following principles: .
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/or 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 should cover the actual use of proceeds and if possible, the expected impact of the allocated projects against the KPIs/benchmarks disclosed ex-ante.