Johannesburg recently issued its first green city bond, making it the first C40 city to tap into this innovative financing mechanism. Green city bonds raise funds from fixed income investors to support city government projects that mitigate climate change.
Executive Mayor of Johannesburg Mpho Parks Tau applauded the historic moment:
“This clearly demonstrates investor confidence in the City of Johannesburg and commitment to environmental stewardship and climate change, while receiving a market related financial return. The City would like to thank all the investors that made this debut green bond a success.”
Johannesburg’s green city bond is worth ZAR1.5bn (approx US$143m). Green initiatives that will receive funding through the green bond include the Bio Gas to Energy Project, the Solar Geyser Initiative and dual-fuel buses, as well as other projects that are critical to reducing the city’s greenhouse gas emissions.
Green city bonds help cities access additional funding and tap into a new investor base with socially responsible investment; they have great potential to drive climate action in cities around the world. Johannesburg will be working with the C40 Sustainable Infrastructure Finance Network and the Climate Bonds Initiative to share its successful model with cities across C40.
To read the full press release on Johannesburg’s green city bond issuance, click here.