Strong Support For Sustainability Projects
The City of Johannesburg is proud to announce that today we had a successful auction of the first green bond COJGO1 maturing in 2024. The bond of R1.46 billion is priced at 185 basis points (1.85%) above the R2023 Government Bond, which is very competitive and is a reflection of the City’s improved financial position.
Executive Mayor of Joburg, Clr Parks Tau says “This is the first green bond to be listed in the 2013/2014 financial year and marks a historic occasion, as Joburg is the first city in the C40 Cities Climate Leadership Group to issue the Green bond.”
The City is pleased to announce that the bond auction was a success and 150 percent oversubscribed.
This funding demonstrates commitment to environmental stewardship and climate change, while receiving a market related financial return.
The Green Bond will provide the City with a funding source to improve and expedite the implementation of its climate change mitigation strategy and move the City towards a low carbon infrastructure, minimal resource reliance and increased preservation of natural resources. What distinguishes this green bond from any other general obligation bond is that the projects to be financed are green initiatives such as the Bio Gas to Energy Project and the Solar Geyser Initiative, as well as all other projects that reduce green house emissions and contribute to a resilient and sustainable city.
The City is not new to finding innovative funding mechanism as it also pioneered the first general obligation municipal bond in 2004. The City has successfully redeemed R1.9 billion since the inauguration of the municipal bond market including R900 million in the past 12 months.