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South Africa’s JSE lists first social bonds on sustainability segment

JOHANNESBURG, (The Southern African Times) – South Africa’s Johannesburg Stock Exchange (JSE) received its first listed social bonds in the country to its sustainability segment, said the JSE on Friday.

JSE said the bonds were listed by the TUHF Limited in partnership with Standard Bank through Urban Ubomi 1, an asset-backed security structure administered by financial institution TUHF, which finances property entrepreneurs in their purchase and refurbishment of affordable rental properties.

The TUHF raised R609 million (40.5 million U.S. dollars) in bonds with Standard Bank acting as the sole arranger.

“It is encouraging and inspiring to see South African businesses taking the Sustainable Development Goals (SDGs) to heart, and utilising the JSE Sustainability Segment to drive inclusive economic growth,” said Sam Mokorosi, head of Origination and Deals at the JSE.

“As the biggest stock exchange on the continent, we are excited to list our first social bonds that will enable the TUHF through Urban Ubomi to drive sustainable development through the provision of affordable housing and improved access to funding for property SMMEs and entrepreneurs,” said Mokorosi.

The JSE said TUHF raised funds through the capital markets and provided these funds to property entrepreneurs who redevelop buildings in urban areas with the aim of supplying high quality, affordable rental housing.

“The work that will be implemented through the capital raised by Urban Ubomi will significantly contribute to several of the SDGs, and the JSE is honoured to provide an environment that enables social development and financial inclusion in line with the SDGs,” said Mokorosi.

The JSE said the listing of social bonds are in line with the 2030 Agenda for SDGs which seeks to achieve a better and more sustainable future for all.

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