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Growthpoint Properties lists on the JSE’s Green Bond Segment
03 May 2018

Growthpoint Properties will use R1.1bn green bonds issued to fund its environmental initiatives

Today, the JSE celebrated Growthpoint Properties’ listing on its Green Bond Segment. Growthpoint Properties is the first corporate in South Africa to list in the Green Bonds segment of the JSE.

“The JSE is proud to welcome Growthpoint to the Green Bond Segment, but also importantly for being the first corporate in South Africa to issue a green bond. Growthpoint’s successful inaugural green bond has proved there are benefits in committing to the promotion of South Africa’s climate resilient future as well as for being at the forefront of the financial sector’s response to the investment challenges posed by climate change,” says Prejelin Naggan, head of Primary Markets at the JSE.

The JSE’s Green Bond Segment was launched in October last year and it provides a platform for companies, and other institutions, to raise funds that are ring-fenced for low carbon initiatives and for investors to invest in securities that are truly green.

"We are proud to be the first corporate to list on the new Green Bond Segment of the JSE. This is an exciting milestone for all involved. The launch of our Green Bonds has further diversified Growthpoint’s sources of funding by linking our sustainable developments and green buildings with capital markets. They have been well received by local and international investors and we are pleased with the results. Growthpoint will continue to drive green development and a sustainable property sector,” says Estienne de Klerk, CEO of Growthpoint South Africa.

The R1.1 billion ($94 million) Green Bonds issued by Growthpoint will be used to refinance funding for the green office buildings in the new Growthpoint THRIVE Portfolio and specifically the THRIVE Platinum Portfolio, which includes its top green-rated office properties. Buildings in this portfolio have a South African Property Owners Association (SAPOA) Premium- or A-grade rating as well as a Green Building Council of South Africa (GBCSA) Green Star SA rating of Four Stars or higher (design, as-built or existing building performance).

In addition, suitable industrial and retail properties with Four-Star Green Star ratings or higher will also be eligible. Environmental projects related to Growthpoint’s buildings that have positive environmental impacts, such as solar energy projects, will also qualify for Green Bond funds.

“Growthpoint is laying new foundations for the capital flows needed to achieve the commitments within the South African context for securing investments and jobs in the future. Together with the emergence of other corporate green bond issuers we are confident that this will make a leading contribution to developing green bond markets, creating new and innovative climate finance solutions. Growthpoint should be greatly congratulated for being at the forefront of this,” concludes Naggan.

The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 130 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE) and holds the chairmanship of the Association of Futures Markets (AFM). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. The JSE is recognised as a CCP by its peers and regulators (international and domestic) and we help formulate responses on international regulation.

Growthpoint provides space to thrive with innovative and sustainable property solutions. It is an international property company and the largest South African primary REIT listed on the JSE. It owns and manages a diversified portfolio of 559 property assets, locally and internationally. Growthpoint is a Founding Member of GBCSA, a member of the GBCSA’s Green Building Leader Network, a component of the FTSE4Good Emerging Index and has been included in the FTSE/JSE Responsible Investment Index for eight years running. It owns and co-owns the largest portfolio of certified green buildings of any company in South Africa and is recognised as a leading developer of green buildings.




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