Johannesburg Stock Exchange approves listing of five social bonds
The Johannesburg Stock Exchange (JSE) has approved the listing of Transsec 5’s five social bonds aimed at improving access to public transport by funding SMMEs, primarily in the minibus taxi industry.
The 10-year bonds, which have raised a total of R543 million, form part of the first tranche of Transsec 5’s planned R2.5 billion capital raising programme, which was registered with the JSE on 14 May 2021.
The five bonds, namely Transsec 5 APS A1, Transsec 5 APS A2, Transsec 5 APS B2, Transsec 5 APS C2, and Transsec 5 APS Omega, will mature on 20 June 2031 and will be up for refinancing between 20 April and 20 July 2024.
The bonds will trade on the JSE’s Sustainability Segment, established by the Johannesburg-based bourse to assist companies to raise debt for green, social and sustainable investment projects.
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Sam Mokorosi, Head: Origination and Deals at the JSE, said the exchange was heartened to see more and more issuers listing on the Sustainability Segment, where they can raise capital that enables them to implement their environmental, social and governance (ESG) initiatives.
“As the JSE, we commend entities that list on our exchange for taking to heart the importance of balancing ESG imperatives with profit-making. Transsec 5’s listing objectives are noble. The company intends to improve access to better public transport and wants to fund SMMEs, which enable employment creation,” concluded Mokorosi.
Once Transsec 5’s bonds list, they will bring the number of sustainability instruments floated on the Sustainability Segment to 35, raising the segment’s market capitalisation to over R17 billion.
The segment makes it accessible and easier for companies to list and trade sustainability-related instruments to raise funds for activities directed at sustainable development.
