The JSE’s Transition 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 climate or just transition-related purposes. A just transition means greening the economy in a way that is as fair and inclusive as possible to everyone concerned, therefore creating decent work opportunities for all.

Transition finance is expected to play a significant role in enabling a just transition. It is particularly relevant to a carbon-intensive economy such as South Africa, as it supports the achievement of our national commitment to the Paris Agreement and the goal of being net zero by 2050.

Who is it for?

Issuers:

Bonds are generally issued by governments, government agencies and large private corporations since the bonds are typically backed by the Issuer’s balance sheet. The JSE provides prospective issuers access to a deep capital pool in a well-regulated, robust market environment.

Investors:

Investors benefit from easy access to globally recognised socially responsible investment options, a high level of transparency and exposure to an increasingly important component of economic activity. Transition debt securities are appropriate for institutional and other investors whose mandate is aligned to a low-carbon transition.

What are the requirements?

During the listing process, the issuer can apply to have the issuance labelled as transition debt securities. The JSE’s Issuer Regulation division will assess whether the application complies with the Transition Segment Standard. The criteria for the Transition Segment are based on the following principles:

Transition Segment Standards:

The listing of Transition Debt Securities (new issuance or framework) is granted subject to compliance with the Debt Listings Requirements and provided the debt securities are issued following the Transition Segment standards as supported by a complete review report.

Provide an external review:

Applicant issuers must appoint an independent external reviewer per the guidelines on external reviews.

Investors may trade in transition debt securities like any other security.

Prospective issuers must be registered clients of a JSE member.