It enables companies to list and raise funds for sustainability linked instruments and projects.
The Johannesburg Stock Exchange (JSE) has announced plans to expand its current Green Bond Segment in an effort to drive sustainable investment and development.
According to a statement released by the JSE, part of these plans is the introduction of a Sustainability Segment and amendments to its debt listing requirements for this new segment. The listing requirements will include sustainability instruments under the International Capital Market Association (ICMA) Green Bond principles, Social Bond principles and Sustainability guidelines.
The new segment aims to make it easier to list and trade sustainability linked instruments. It also provides a platform for companies and other institutions to raise funds for sustainable projects.
JSE group CEO Leila Fourie said:
“As the JSE, we continuously strive to create an enabling environment for our issuers and investors. Our vision is for our Green Bond Segment to evolve into a holistic Sustainability Segment, which will provide companies with an effective tool to raise capital for investments into sustainable projects, and continue in the spirit of making the markets work to support sustainable development. We encourage anyone who is interested to engage with us so that we can do our bit to create fit for purpose instruments which create value for issuers and investors.”
According to the statement, the expansion will build on the success of the Green Bonds’ “use of proceeds” model. It will follow established frameworks for Sustainability Bonds and Social Bonds in addition to the current Green Bonds.