The bond was issued under the P2billion note programme Absa has listed on the BSE.
Sustainable bonds also known as green bonds, provide investors with an avenue to support projects that have positive environmental and social impacts.
Speaking during the launch last Thursday, Botswana Stock Exchange CEO, Thapelo Tsheole, hailed the development noting that the infusion of sustainable bonds into the market reflects a growing global trend towards responsible and ethical investing. He said the trend also demonstrates Botswana’s commitment to sustainable development.
“By incorporating sustainability into our capital markets, we not only attract socially responsible investors but also foster a culture of responsible business practices among issuers,” he said.
In the coming year, he said, the local bourse will roll out Environmental, Social and Governance (ESG) guidelines for the listing of sustainable bonds. The Exchange will also explore the introduction of ESG rating for issuers.
Tsheole said these initiatives aim to provide clarity and guidance to market participants while also encouraging the adoption of sustainable practices.
He further said the BSE had introduced a fee incentive for the listing of sustainable bonds. The incentives include a 25% discount on initial listing fees and annual sustaining fees relative to conventional bonds.
“This strategic decision has played a pivotal role in elevating Botswana’s ranking in the Absa Africa financial markets Index,” he said.
The CEO noted that development agency, FSD Africa, had played a critical role by providing technical assistance under the SADC green bond programme. He said the agency was instrumental in facilitating Absa’s successful issuance of the sustainable bond.
Absa Bank Botswana managing director, Keabetswe Pheko-Moshagane said the issuance would be channelled directly into projects that drive the sustainability agenda by renewing investment in renewable energy and sustainable infrastructure projects while also empowering communities.
“This listing on the local bourse represents a major step forward in Absa’s ongoing efforts to drive positive change and build a more resilient and sustainable economy,” she said.
