Standard Bank’s two social bonds to fund affordable home ownership are 2.3x oversubscribed. Picture Ian Landsberg.
Financial services institution Standard Bank on Thursday listed two social bonds on the Johannesburg Stock Exchange (JSE) that will finance borrowers looking to buy affordable housing, with a focus on female borrowers.
According to the bank, this will target households with a gross maximum monthly income of R26 100. The issuance has raised a total of R2 billion for mortgage lending.
The bank said prospective investors would find the bonds trading under JSE codes SBSS01 and SBSS02. “The social bonds have been listed 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,” it said.
JSE origination and deals head Sam Mokorosi said strong interest in social bonds, reflected by their 2.3x times oversubscription, was indicative of the desire by both South African corporates and investors to balance efforts in creating affordable home ownership with a special focus on empowering women.
“In line with commemorating Women’s Month, Standard Bank’s initiative will help advance women empowerment, promote gender equality and inclusive economic participation. These bonds will contribute to rolling back the housing backlog across our country, which is estimated at 2.6 million units with a focus on enabling women to build an asset base,” said Mokorosi.
According to Mokorosi, the social bonds floated by Standard Bank have brought the number of sustainability instruments listed on the JSE’s Sustainability Segment to 29, raising the segment’s Nominal Issued Value to over R14.3 billion.
Standard Bank CEO Kenny Fihla said: “Standard Bank Group is excited by this, our first sustainable issuance in the local market and our first social bond. As a bank and issuer, we are serious about sustainability. We also perceive the ‘S’ pillar within ESG to be critically important, particularly in emerging markets. To be able to deliver a social bond that will have a positive impact on people across the country, but particularly on women in what is Women’s Month is quite momentous.”
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