The City of Cape Town, as part of its Climate Change Strategy, issued a 1 billion Rand (US$76 million) green bond to raise capital for projects to prepare and protect the city against the effects of climate change. These projects included energy efficiency in buildings, water management and the rehabilitation and protection of coastal structures.
KPMG in South Africa provided pre-issuance assurance services to the City. This involved evaluating the bond management frameworks and green bond criteria, as well as reviewing the processes for managing and reporting on the use of bond proceeds. Based on KPMG’s recommendations, the City was able to enhance its green bond frameworks, and its internal management and reporting processes.
The bond was significantly oversubscribed and international ratings agency Moody’s gave it a GB 1 “excellent” rating, adding credibility to its green credentials and controls. The publication Environmental Finance named the bond as Green Bond of the Year in its Local Authority category.
For more information, please contact:
Tomas Otterström, KPMG in Finland and KPMG in Sweden.