Rand Water receives international recognition
Rand Water's R1.7-billion sustainability-linked bond has been selected as the winner of this year’s Bonds, Loans & Sukuk Africa Awards for Local Currency Sovereign, Supra & Agency Bond Deal of the Year.
Rand Water completed the successful sustainability-linked bond in June 2021, becoming the first State-owned entity in Africa to issue one.
Since 2014, the awards have recognised the most innovative and ground-breaking deals from sovereign, corporate and financial institution issuers and borrowers, Rand Water said in a statement.
The selection process involves close examination of the deal size, tenor, structure and distribution, as well as analysing the background of the borrower and their accessibility to financing.
“The borrowers receive extra credit for those deals that demonstrate high-quality execution, accessing new pools of liquidity, innovative structuring, and opening-up new markets,” it said, noting that the recognition indicates that Rand Water is an agent of change in that the yield shows an improvement in Rand Water’s credit spread against the sovereign benchmark and there is a considerable reduction in the weighted cost of debt that benefits customers and flows down to the end-user.
Further, it indicates the sustainability of Rand Water to diversify and increase the investor base with different portfolio mandates.
This confidence in Rand Water provides holistic appeal to all stakeholders and potential investors.
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