- Fortress REIT is issuing sustainable bonds to raise $70m.
- The funds will fund the installation of 5.8MWp solar PV capacity.
- The solar systems will help the company to reduce reliance on Eskom.
South African property investment company Fortress REIT has issued sustainable bonds to raise $70 million. The company plans to use the funds raised to install solar PV systems for its property assets in South Africa. The sustainable bonds launched by Fortress REIT are listed on the Johannesburg Stock Exchange (JSE). Fortress REIT is issuing two bonds; three-year ZAR495 million ($33.5 million) and five-year ZAR405 million ($27.4 million).
The first bond will finance the installation of 2.2MWp of solar PV panels by June 2022, while the second issue will fund the deployment of 3.6MWp of solar systems by June 2024.
Fortress REIT believes that the solar capacity will enable its property assets to meet their solar energy targets, reduce their dependency on Eskom’s grid and carbon footprint. Ian Vorster, Fortress REIT’s CFO, stated: “sustainability bonds are increasingly being used around the world as a source of financing for renewable energy development, designed with compliance requirements and measurable economic returns for investors while mitigating climate change. We are inspired by the opportunity to use our real estate assets in a way that can have a significant impact in the years to come.”