Investing in a Sustainable Future – JSE

By 2020-07-06Uncategorized

Businesses that focus on ensuring a sustainable future are worth investing in today. Introducing the JSE’s new Sustainability Segment, enabling companies to raise debt for green, social and sustainable initiatives on a trusted, global market place.

The JSE’s Sustainability Segment makes it easier to list and trade sustainability related instruments, and provides a platform for companies and other institutions to raise funds for activities directed at sustainable development as we transition to a sustainable economy. These instruments provide an opportunity to finance investments that provide environmental and social benefits. This segment broadens the investment options available to investors, and allows issuers to increase their participation in impact and sustainability investments.

The Sustainability Segment debuts on the Main Board of the JSE for listing of debt instruments which are used for raising listed debt where the proceeds are ring-fenced for activities directed at sustainable development. These include:

  • Green bonds (including energy, water and waste);
  • Social bonds (including UN SDGs, housing, schooling and health); and
  • Sustainability bonds (a combination of green and social bonds) which are specifically earmarked to raise funds for climate, social and environmental projects.

Features:

  • Ear-marked to finance Environmentally/Socially/Sustainably responsible initiatives;
  • Matches your instrument to your asset; and
  • Raises debt on your balance sheet.

Benefits:

  • Demonstrates your commitment and contribution to a sustainable economy
  • Diversifies your funding instruments
  • Provides potential for improved pricing
  • Allows access to deep pools of capital
  • Appeals to a more diverse investor base
  • Offers a highly regulated and secure trading environment
  • Allows you to match your capital raised to your assets intention
  • Appeals to the increased market demand for these instruments
  • Enhances your visibility and profile

Source: Johannesburg Stock Exchange,

https://web.jse.co.za/investing-sustainable-future