Fortress REIT (Real Estate Investments), a South African hybrid fund that invests in direct properties and other publicly traded real estate firms, has issued a total of $61.5 million in sustainability-linked bonds. The bonds will be used to increase the company’s renewable energy output and provide additional solar energy to the national grid.
The Johannesberg Stock Exchange has approved the listing of a $33.8 million three-year sustainability-linked bond and a $27.6 million five-year sustainability-linked note by Fortress. Although there are no explicit use-of-proceed restrictions for the bonds, the cash will help Fortress with the continuing installation and expansion of solar energy in South Africa throughout its retail and logistics sectors.
The company aims to increase the amount of solar energy installed in megawatt-peak (MWp) terms in relation to the South African component of its portfolio.
The goal is for a 2.2 MWp increase at the first target date in June 2022, followed by a further 3.6 MWp increase in June 2024, for a total installation of 5.8MWp. This will be added to Fortress REIT’s present solar energy programme, which generates 4.735 MWp from ten installations, taking Fortress REIT’s combined solar energy production to 10.7 MWp by 2024, one of the greatest in the local REIT industry.
