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(CAJ News) – THE International Financial Corporation (IFC) has issued its first Rand-denominated domestic bond on the Johannesburg Stock Exchange, in a bid to assist the private sector address climate change through investments and innovative financing.


The first green bond to be issued on the JSE by a multilateral institution, the listing raises R1 billion ($71 million) targeted towards renewable energy projects.


To celebrate the bond’s listing debut, Saleem Karimjee, IFC Country Manager for Southern Africa opened trading on the JSE alongside Donna Oosthuyse, Director of Capital Markets at the JSE.


Oosthuyse said the listing of the IFC green bond was an example of the JSE’s efforts to attract significant capital for funding and investment activities focused on mitigating the effects of climate change and financing sustainable development.


“Today’s (Thursday) listing illustrates the power of capital markets to facilitate funding for energy efficiency and renewable energy projects in emerging markets like South Africa,” said Oosthuyse.


Karimjee said IFC had a strong commitment to financing projects that had a positive impact on climate change.


“Green bonds are a powerful tool that is helping us rally international and domestic savings for climate finance,” said Karimjee.


IFC, a member of the World Bank, is the first multilateral organisation to list a green bond on the JSE and the fourth entity to list a bond dedicated to funding private sector investments focused

on renewable energy and energy efficiency.


The listing of the IFC green bond follows a similar and successful issuance of R 1,46 billion bond issued by the City of Johannesburg last year where the proceeds were used to fund green initiatives within South Africa’s largest city.


The bond was issued at a yield of 8,72 percent.


Since 2010, IFC has raised funds for renewable energy and energy efficiency projects in other emerging market, such as India and China. As of November 2015, IFC had issued nearly $4,5 billion in green bonds globally.