IFC to invest R1bn in a green bond to fund Growthpoint’s green initiatives

From left to right: Gerald Völkel, Group Financial Director (Growthpoint Properties), Natalie van der Bijl, ESG Manager (Growthpoint Properties), Klaus-Dieter Kaempfer, Head of Absa Commercial Property Finance and Equity Investment, Olaf Schmidt, Manager, Real Estate, Manufacturing, Health, Education, Retail & Hotel Investments (IFC), Ken Osei, Principal Investment Officer (IFC), Zöe Masilo, Sustainable Finance Analyst (Absa Corporate and Investment Banking), Marcus Veller, Director, Debt Capital Markets (Absa Corporate and Investment Banking).

The International Finance Corporation (IFC) has announced a R1 billion investment in a green bond issued by Growthpoint Properties that will assist the REIT in financing green improvements across its office, industrial and retail spaces in SA.

The energy and water efficiency initiatives are expected to reduce CO2 emissions from its portfolio by more than 18 000 tons annually.

The bond will also assist Growthpoint in refinancing its green office building located at 144 Oxford in Rosebank, Joburg. The building has a Green Star 5 Star category certification, as defined by the Green Building Council of South Africa (GBCSA).

Absa Corporate and Investment Banking (CIB) acted as bond advisors for the transaction and helped Growthpoint with the private placement of the bond on the JSE.

The green bond was issued under Growthpoint’s existing Domestic Medium-Term Note (DMTN) programme, which is registered at the Johannesburg Stock Exchange (JSE), aligning with the IFC’s strategy to green the commercial sector in SA by further developing capital markets, promoting climate-smart investments, and crowding in climate-relevant private capital.