In April 2021, IPF became the first South African REIT to issue a sustainability-linked bond. This was a milestone event for the sector. The issuance of the note reflects the Fund’s direct commitment to ESG principles.
The three-year issuance raised R800 million of unsecured bonds in a widely subscribed offer at a competitive coupon rate (3m JIBAR + 190bps), providing an opportunity to reduce the percentage of encumbered assets on the balance sheet. Furthermore, in line with the bond’s green credentials, the Fund will benefit from a reduction in the coupon of 10 basis points from its initial margin. This benefit will be realised when certain pre-agreed performance objectives, linked to the rollout of green building and renewable energy targets, are achieved by 30 June 2022.
Our sustainability-linked bond demonstrates the Fund’s commitment to ESG principles and our efforts to promote good corporate citizenship.