The JSE is banking on green bonds to attract investment from international philanthropists and foundations that seem ready to open their purses for social-impact causes. The JSE’s head of capital markets, Donna Nemer, says she believes this sort of instrument has huge potential in SA. The stock exchange launched the green bonds segment in October 2017 and five green bonds have been listed to date. Two were municipal bonds, two were listed by development finance institutions and one by a corporate, Growth Point Properties.

“Green bonds have been watched in various countries around the world. SA is one of the first … When the City of Cape Town issued a green bond, it was three times oversubscribed. These instruments are of great interest to investors,” said Nemer. The JSE’s listing requirements for green bonds are similar to those for normal bonds, but the use of funds raised from green bonds has to be in accordance with global standards on bonds for climate change. Nemer said t...

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