The Johannesburg Stock Exchange (JSE) is pleased to announce that it has approved the listing of six SA Taxi Holdings’ social bonds on the bourse’s Sustainability Segment. The six social bonds valued at a total of R900 million will have a maturity of between one and 10 years.
SA Taxi Holdings, a subsidiary of JSE-listed Transaction Capital, has indicated it will use the proceeds from the social bonds to finance economic development, support social inclusion, hire inclusively, and promote climate resilience.
SA Taxi mainly finances minibus taxi entrepreneurs, who operate minibus taxis, but may not have access to credit from traditional banks. Through granting of the loans, SA Taxi empowers small, micro and medium-sized enterprises (SMME) and promotes broad-based black economic empowerment (B-BBEE), helping to create an inclusive and diverse economy.
The minibus industry currently has over 250,000 minibus taxis on the road, which transport 66.5% of commuters daily. In terms of its contribution to the South African economy, the industry is estimated to generate R50 billion annually and spends R20 billion on fuel a year.
SA Taxi’s business model has been hailed for promoting sustainability in the public transport sector through innovative operations that extend across the financing and asset value chain.
“This is a positive development in the public transportation sector. This listing will promote inclusive economic growth in one of the country’s key sectors serving a crucial segment of South Africa’s workforce. As a stock exchange, we are pleased that we are able to facilitate the advancement of black economic empowerment in this manner,” says Sam Mokorosi, Head of Origination and Deals at the JSE.
The JSE launched the Sustainability Segment in June 2020 with the aim to provide a platform for companies to raise debt for green, social and sustainable initiatives. The segment makes it accessible and easier for companies to list and trade sustainability-related instruments to raise funds for activities directed at sustainable development.
