The City of Cape Town’s first green bond auction exceeded expectations during a closed bidding process on Wednesday. Within two hours of bidding, 29 investors made offers totaling R4.3bn in response to the R1bn being sought. The R1bn cleared at 133 basis points above the R186 government bond, Cape Town mayor Patricia De Lille said. Green or climate bonds are issued by governments or companies to finance measures to mitigate or adapt to climate change. Johannesburg became the first municipality in SA to do this in 2014, when it listed a R1.46bn green bond on the JSE. De Lille said the response from the market was overwhelmingly positive and demonstrated the great appetite among investors to participate in sustainable projects. "The market’s enthusiasm is also a resounding vote of confidence by investors in the city’s governance, strong financial standing, and ability to deliver on sustainable projects." "In line with our Organisational Development and Transformation Plan’s governance...
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