IFC invests R1bn in Growthpoint’s green bond

The Worldwide Finance Corporation (IFC) will devote R1 billion in a inexperienced bond established by Growthpoint – South Africa’s biggest mentioned residence group.

Asserting the deal earlier this 7 days, Growthpoint and the IFC said the new money will finance electricity and h2o enhancements throughout Growthpoint’s business, industrial and retail spaces across South Africa.

The improvements are predicted to decrease carbon emissions from the company’s portfolio by in excess of 18 000 tons annually, in accordance to a joint statement.

Listen/Study: IFC on environmentally friendly bonds, sustainability and SME funding in SA

In addition, the bond “will assistance Growthpoint” refinance its environmentally friendly office constructing situated at 144 Oxford in Rosebank, Johannesburg.

“Increased funding for eco-friendly properties is important in South Africa, which is going through raising electricity and water shortages. Furthermore, accessibility to green funding stays constrained in the nation,” the IFC and Growthpoint stated.

Growthpoint’s team economic director Gerald Völkel said the team is fully commited to building a house to prosper in with “innovate and sustainable house remedies in environmentally welcoming structures even though improving upon the social and material wellbeing of men and women and communities”.

He pointed out that the green bond supports the company’s ESG (environmental, social, and governance) tactic and renewable energy objectives and furthers the diversification of its funding.

Read through: Absa gets IFC financial loan to drive SA very low-cost dwelling home loans

“IFC is committed to accelerating obtain to green and sustainable properties in South Africa to deal with local weather alter, shield the environment and guidance financial activity,” said Adamou Labara, IFC’s region manager for South Africa.

Labara noted that the environmentally friendly bond expense will add towards a greater local weather adjust resilience in the country by supporting climate-intelligent infrastructure and cut down the personal sector’s carbon footprint.

Growthpoint extra that the green bond aligns with its sustainability approach, which has a one of its ambitions to certify its full creating portfolio as carbon neutral by 2050.

Go through:
Growthpoint corporate place of work portfolio aims for web-zero carbon position by 2030
Growthpoint: Office sector will by no means be the exact due to Covid-19
Growthpoint companions with Investec, IFC on Africa true estate
Rosebank is SA’s priciest business node, report displays

The house big explained the method involves reducing greenhouse gas emissions by 25% and expanding its renewable energy use by extra than 5 periods by 2026.

“The inexperienced bond R1 billion issuance was issued underneath Growthpoint’s current domestic medium-expression note [DMTN] programme, which is registered at the Johannesburg Stock Trade,” the firm pointed out.

“It aligns with IFC’s tactic to green the professional sector in South Africa by even more building capital markets, advertising and marketing local climate-wise investments, and crowding in weather-related personal funds.”

The team mentioned that Absa Corporate and Expenditure Banking (CIB) acted as bond advisors for the transaction and assisted Growthpoint with the personal placement of the bond on the JSE.

Nondumiso Lehutso is a Moneyweb intern.

Pay attention to Moneyweb deputy editor Suren Naidoo talking to Environmentally friendly Making Council South Africa CEO Lisa Reynolds on the Assets Pod (or examine the transcript):