Redefine Properties, one of South Africa’s leading real estate investment trusts (REITs), has issued another green bond as it leverages its sustainability journey.
Redefine will use the money raised to refinance eligible green assets across its property portfolio aligned to the group’s over-arching, long-term climate-resilient framework. The assets include highly rated green buildings that incorporate various initiatives to improve their energy and water efficiency.
Redefine’s third green bond was oversubscribed 1.9 times with R1.9 billion received in bids and resulted in an upsized allocation to ZAR1.0 billion across 3, 5 and 7 years at an auction on 21 August.
“Demand for the bond issuance was particularly high in the seven-year tenor, resulting in the allocation of ZAR425 million to that tranche, which bodes well for our long-term funding structure,” says Ntobeko Nyawo, Chief financial officer of Redefine. “South Africa’s debt capital market is experiencing a recovery in demand for high-quality commercial instruments with an ESG underpin.”
This green bond will further support the long-term decarbonisation of Redefine’s buildings, focusing primarily on reducing energy consumption through efficiency interventions, mutual collaboration with tenants and solar PV expansion.
“This latest green bond issue further improves our funding match between our assets and liabilities in our capital structure and reaffirms our commitment to placing ESG at the heart of what we do,” Nyawo says. “We believe this will continue to play a critical role in strengthening and solidifying our balance sheet.”
The capital raised will be deployed in refinancing qualifying buildings that have achieved a 4 Star or higher Green Building certification, a tool used to rate the environmental impact and sustainability-related performance of buildings, as defined by the Green Building Council South Africa.
The green bond aligns with Redefine’s sustainability goals to transform its properties into environmentally sustainable and resource-efficient assets.
The green bond also aligns with the International Capital Market Association’s green bond principles. It was listed on the JSE in the Sustainability Segment, a platform for companies to raise debt for green, social and sustainable initiatives.
Nyawo adds that Redefine will continue its strategic participation in SA’s deep and liquid debt capital market as it provides the opportunity to raise competitive funding to enable the group to achieve its mission as it aims to deliver the smartest and most sustainable spaces the world has ever known.
About Redefine Properties
Redefine is a Real Estate Investment Trust (REIT) with a sectoral and geographically diversified property asset platform. Redefine’s portfolio is predominately anchored in South Africa through directly held and managed retail, office and industrial properties, complemented by a strong presence in Poland’s retail and logistics property assets.
Redefine’s purpose is to create and manage spaces in a way that transforms lives, which requires more than a business-as-usual approach: it requires an integrated approach to making strategic choices that will sustain value creation for all stakeholders by putting people and purpose at the heart of what we do and focusing on what matters most by executing our strategic priorities.
Redefine is listed on the Johannesburg Stock Exchange (JSE). By volume, Redefine’s shares are among the most actively traded in the SA REIT sector. This makes it a highly liquid, single-entry point for investors to gain exposure to the South African and Polish real estate markets.
