Cape Town to issue first green bond in 2017

Cape Town, will issue its first green bond on 1 July 2017, speakers at a C40 event Financing Sustainable Cities announced today in London.

The bond, which is valued at around 1 billion rand (US$68 million), has secured a lead arranger, though the formal roadshow for the instrument will target mostly South African companies, including some international firms listed on the German stock exchange.

"We want to test the market. If the market is interested in the green bond going forward, we do have permission to extend it further," a source at the event told Cities Today.

South Africa's credit rating was lowered from BBB- to BB+ by S&P Global on 3 April, putting it at speculative or junk l...