RMB has arranged a R1.143 billion gender-linked bond issuance across three-year and five-year tranches, the first such bonds on the continent, for industrial group Barloworld.
“The issuance of bonds with gender specific KPIs is testament to our commitment and enables our stakeholders to track our progress in this regard. The KPIs that have been outlined are in line with our diversity and inclusion journey,” said Barloworld finance director Nopasika Lila, in a statement.
The bond will be listed on the JSE’s Sustainability Segment.
“The gender-linked bonds have been issued in alignment with our gender transformation strategy and something that we as Barloworld are committed to and have been monitoring for years. We are proud to have pioneered this landmark transaction,” said Relebohile Malahleha, Barloworld Executive: Strategic Finance and Treasury.
It is well known that South Africa has a long way to go to improve gender parity in the workplace, and more broadly through equitable access to economic opportunity.
RMB worked with Barloworld to establish a gender-linked bond framework that outlines the relevance of gender diversity which will enable Barloworld to issue similar instruments in future.
The framework had been externally verified to confirm its alignment with the international capital market associations’ sustainability linked bond principles, said Lila.
Danielle Frank from RMB’s Sustainable Finance & ESG Advisory team, said: “This gender linked bond not only recognizes the need for greater gender transformation in South Africa but also acknowledges local investor demand for more socially-aligned instruments. Sustainable finance offers an opportunity to innovate and deliver solutions for clients that support a long-term sustainable economy.”
Frank said the gender-linked bonds were priced competitively compared to Barloworld’s traditional bonds. The instrument further delivered a pricing benefit for Barloworld on the achievement of the gender performance targets.
“We are confident this transaction sets the benchmark for other corporates on the continent and will encourage companies to focus on their disclosure of gender-related metrics and ultimately commit to targets for improvement” said Trishalia Naidoo, from RMB’s Debt Capital Markets team.
BUSINESS REPORT