RMBarrangesR1bnsustainability-linkedbondforRedefineProperties

 

Client challenge

Redefine is a trusted partner in the property market, with a focus on owning, developing, and managing quality property. Redefine is considered an ESG market leader within the real estate sector and is committed to maintain their strong sustainability profile. One of Redefine’s strategic priorities is to build their reputation, which includes embedding ESG in every aspect of their business. Redefine’s sustainability strategy is designed with this in mind and aligned to the guiding principles contained the United Nation's Sustainable Development Goals (UN SDGs).

With mounting pressure from asset owners and key institutional investors demanding greater emphasis on sustainability, Redefine needed a trusted banking partner to assist them in taking the next step in their ESG strategy implementation.

RMB's solution

Acting as arranger and sustainability agent, RMB supported Redefine’s sustainability strategy with a R1bn sustainability-linked bond. Our Sustainable Finance and ESG Advisory team worked closely with the Debt Capital Markets team to structure the funding package. The bond is linked to renewable energy, greenhouse gas emission and water efficiency performance targets.

Client benefits

The funds will be used to refinance upcoming bond maturities and ultimately to enable Redefine to facilitate a reduction in greenhouse gas emissions, significantly enhance their water efficiency solutions, and measurably increase the use of solar energy in the South African portion of their portfolio.

This is the largest amount raised so far by a South African Real Estate Investment Trust (REIT) in the growing sustainability-linked bond market in South Africa. The outcome exceeded expectations and recognises Redefine’s improved balance sheet strength and bears testimony to the progress they have already made on the ESG front.

Client	Redefine Properties
Size of deal	R1bn
Sector	Real estate
Capabilities	Sustainable Finance and ESG Advisory Debt Capital Markets
RMB's role	Sustainability agent Arranger and dealer
Country	South Africa