MEDIA RELEASE
15 NOVEMBER 2022
Redefine partners with RMB to enable its sustainable funding strategy
As Redefine Properties Limited (Redefine) embarks on the next phase of its sustainable funding journey, RMB is proud to advise and support on its sustainable finance solutions.
The solutions were based on the establishment of a market-leading Sustainable Finance Framework, developed by RMB. This framework has been verified by means of a second party opinion aligned to the loan market associations green and social loan principles (2021), the international capital market associations, green and social bond principles (2021) and sustainability bond guidelines (2021).
Says Anelisa Keke, Chief Sustainability Officer at Redefine: “This forms part of our overarching green building journey to promote sustainability and climate-smart commercial real estate in South Africa. ESG is at the heart of our business, and our partnership with RMB will help contribute to Redefine achieving a long-term target of net zero carbon status by 2050.”
Through close collaboration between multidisciplined teams, including Sustainable Finance (SF), Debt Capital Markets (DCM), Real Estate Investment Banking (REIB) and Loans Syndications, RMB was able to holistically understand Redefine’s funding requirements, enabling the alignment of this, to Redefine’s sustainable funding strategy.
Danielle Frank, Sustainable Finance transactor for RMB says: “Redefine’s framework is unique in the local market in that it enables its broad access, both locally and internationally to programmatically raise loans and bonds in use of proceeds format (i.e., green, social or sustainability) on a standardised basis, at scale, while enhancing ease of execution.”
Redefine has since leveraged this framework to raise a Syndicated Green Facility (R5.1bn in local currency), the largest of its kind within the African Real Estate sector, as well as issued its inaugural Green Bond (R1.5bn). In total Redefine has raised c.R6.6bn in a green format aligned with their framework.
Sashen Naidoo, REIB transactor for RMB shares more on the Syndicated Green Facility: “This transaction not only enhances Redefine’s already-strong sustainability profile but illustrates that the sector is well positioned to raise large use of proceeds instruments through originating eligible green assets.”
In addition to the Syndicated Green Facility, RMB’s DCM team was appointed as sole lead arranger for Redefine’s inaugural Green Bond issuance, which was listed on the JSE sustainability segment. The IFC’s anchor commitment up to 10-years brought further confidence to the market to result in a well over-subscribed auction, with Redefine issuing, above their targeted quantum at competitive funding rates.
“Redefine successfully raised R1.5bn across 3-year, 5-year, 7-year and 10-year Senior Unsecured Green Bonds. The International Finance Corporation (“IFC”) invested R750m across the 7-year (R250m) and 10-year (R500m) instruments respectively. The auction was well supported and attracted a diverse orderbook of eleven investors. This sets the tone for other REIB and Corporate DCM issuers in the SA market who may be considering sustainable financing solutions,” says Trishalia Naidoo, DCM transactor for RMB.
Redefine’s Chief Financial Officer, Ntobeko Nyawo, says Redefine is committed to actively contributing towards a more sustainable operating environment for all stakeholders. “There is heightened demand for companies to do the right thing and Redefine is intently focused on driving sustainability and climate-smart commercial real estate solutions, as we continue to invest in sustainable assets and accelerate the greening of our physical assets,” he says.
Redefine’s ongoing commitment to ESG, in partnership with RMB, is aligned to the sector’s increasing focus on making buildings more sustainable.
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Contact:
Kate Kelly l RMB l kate.kelly@rmb.co.za