Apr 24, 2012
IDC to issue green bond, divest sharesBack
Africa|Industrial|Industrial Development Corporation|Iron-ore|Kumba|Resources|Sasol|Africa|Energy|Iron-ore Miner|Manufacturing|Mining|Iron Ore|Iron-ore
Patel told parliament during his budget vote speech the IDC will issue a green bond that will be taken up by the Public Investment Corporation with a 14 year tenure "to raise the resources to invest actively in the green economy".
A green bond is exempt from tax and will usually fund an under-developed site.
The IDC also said it would over the next five years divest some shares from its holdings in listed and unlisted companies.
IDC did not say how much it plans to divest from its 80 billion rand portfolio or release details on what shares are on its chopping block. It will keep its strategic stakes in petrochemical company Sasol and iron ore miner Kumba.
"The divestment from mature investments is very much part of the IDC's business model," Gert Gouws, the IDC's chief financial officer separately told journalists.
The IDC, which invests in green energy industries, mining and the manufacturing sectors of Africa's largest economy, has a 13% stake in Kumba and just under 8% in Sasol.
Gouws said the value of the IDC's shares in listed companies was in excess of R50-billion, while in unlisted companies it was "north" of R30-billion.
Edited by: ReutersComment Guidelines (150 word limit)
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...