The Johannesburg Stock Exchange (JSE) welcomes the first listed Social Bonds in South Africa to its Sustainability Segment. The four social bonds valued at R609 million are listed by TUHF Limited (“TUHF”) in partnership with Standard Bank through a securitisation vehicle, Urban Ubomi 1 (RF) Limited.
TUHF is a specialised commercial property and non-bank financial services company that finances micro-developers in inner cities. The company raises funds through the capital markets and provides these funds to property entrepreneurs who redevelop buildings in urban areas with the aim of supplying high quality, affordable rental housing.
“It is encouraging and inspiring to see South African businesses taking the Sustainable Development Goals to heart, and utilising the JSE Sustainability Segment to drive inclusive economic growth. As the biggest stock exchange on the continent, we are excited to list our first Social Bonds that will enable TUHF through Urban Ubomi to drive sustainable development through the provision of affordable housing and improved access to funding for property SMMEs and entrepreneurs,” says Sam Mokorosi, Head of Origination and Deals at the JSE.
In line with the 2030 Agenda for Sustainable Development, the Sustainable Development Goals were adopted by all United Nations Member States in 2015, and they serve as a shared blueprint to achieve a better and more sustainable future for all.
“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,” concludes Mokorosi.
Part of a global trend
The JSE launched the Sustainability Segment in June 2020 with the aim to provide a platform for companies to raise debt for green, social and sustainable initiatives. 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.
Over 30 markets world-wide have a sustainability bond listing segment. To learn more, visit the SSE’s database of stock exchange sustainability activities. Currently, the database has data on 106 stock exchanges and tracks progress on key activities where exchanges are promoting sustainable business and investment practices. It is the largest data set of its kind and the data is freely accessible.
