City of Cape Town mayor Patricia De Lille is going on a road show to lure Gauteng investors with deep pockets to buy her municipality’s R1-billion green bond.
Green bonds are a way to finance green projects to mitigate or adapt to the effects of climate change. The city aims to raise R1-billion to fund these projects.
De Lille told a full council meeting on Wednesday that she would embark on her road show in June and July.
The city’s green projects include the purchase of electric buses and water saving projects.
Said De Lille: “Will the city be able to raise this kind of funding in the bond market? The answer is yes‚ because ... of our credit rating. The credit rating of the City of Cape Town is AAA+ while the rest of the country has got a junk status.”
African National Congress (ANC) chief whip Xolani Sotashe said his party would not vote in favour of two reports on the bond tabled for council’s approval as the city did not specify which projects it was going to fund with the money.
But De Lille said the R1-billion was for accredited‚ certified projects‚ including the buying of electronic buses‚ funding water projects and electricity procurement.
“People will buy them because we are credible. We’ve got a good record; we have four clean audits in a row‚” said De Lille.
TMG Digital
Cape Town seeks investors for R1-billion green bond
City of Cape Town mayor Patricia De Lille is going on a road show to lure Gauteng investors with deep pockets to buy her municipality’s R1-billion green bond.
Green bonds are a way to finance green projects to mitigate or adapt to the effects of climate change. The city aims to raise R1-billion to fund these projects.
De Lille told a full council meeting on Wednesday that she would embark on her road show in June and July.
The city’s green projects include the purchase of electric buses and water saving projects.
Said De Lille: “Will the city be able to raise this kind of funding in the bond market? The answer is yes‚ because ... of our credit rating. The credit rating of the City of Cape Town is AAA+ while the rest of the country has got a junk status.”
African National Congress (ANC) chief whip Xolani Sotashe said his party would not vote in favour of two reports on the bond tabled for council’s approval as the city did not specify which projects it was going to fund with the money.
But De Lille said the R1-billion was for accredited‚ certified projects‚ including the buying of electronic buses‚ funding water projects and electricity procurement.
“People will buy them because we are credible. We’ve got a good record; we have four clean audits in a row‚” said De Lille.
TMG Digital
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