Bigger targets needed to spur premium for South African projects

South African companies looking to issue green bonds or raise capital for climate-friendly projects have a better chance of getting preferential rates if they set ambitious targets that surpass market expectations. “In order to benefit, it should be a stretch target because that speaks to the ongoing sustainability of an entity in the longer term for which they should be rewarded with a slightly lower cost of capital,” Olga Constantatos, head of credit at Futuregrowth Asset Management, said at a Bloomberg event on Wednesday.