Nedbank lists green residential bond on the JSE

Nedbank has listed a R1.09 billion green bond on the JSE’s Sustainability Segment.

On 10 December, Nedbank listed a R1.09 billion green bond on the Johannesburg Stock Exchange (JSE), whose proceeds will be used to fund green residential developments.

The green bond will be floated on the JSE’s Sustainability Segment, which serves as a platform for raising capital for green, social and sustainable investment projects. The bond brings the number of sustainability instruments listed on the JSE’s Sustainability Segment to 35, with a total issued amount of over R17 billion.

JSE head of origination and deals Sam Mokorosi has welcomed the listing of the green bond by Nedbank, saying the bond will address housing needs while helping in the global fight to reverse climate change.

“As the JSE, we are encouraged to see more issuers joining the fight against climate change. Extreme weather events such as tornadoes and droughts are a threat to human and economic sustainability. Green bonds are one way of ensuring a sustainable future for our planet,” said Sam.

The bond has been issued under its R75 billion domestic medium term note programme. The first interest payment is due on 15 March 2022.

Green bonds are fixed-income instruments that are designed to help companies raise capital for investing in climate and environmentally friendly projects while enabling investors to buy into these instruments.

These bonds are typically asset-linked and backed by the issuer’s balance sheet.

“We are proud of this groundbreaking issuance which aligns with the objectives of Sustainable Development Goal 9: Industry Innovation and infrastructure and sets a prime example of how the capital markets in South Africa can be used as a vehicle to structure sustainable finance solutions to attract investment that will move green development forward,” says Nedbank head of sustainable finance solutions Arvana Singh (pictured).

This issuance brings Nedbank’s total amount of green bond issuance on the JSE to R6.8 billion.