First conservation bond is traded on Joburg stock market

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Africa has entered a new phase of conservation finance, with the listing of its first nature-linked, performance-based bond that ties investor returns directly to verified ecological outcomes. The $132 million water catchment protection bond, issued by FirstRand Bank, is now listed on the Johannesburg Stock Exchange. 

• This is the first conservation bond in Africa to be listed on a regulated capital market with performance-based terms, differing from earlier conservation bonds that largely relied on donor-backed financing structures.  

• The bond pays standard coupons, but a portion of returns is triggered only if independent verification confirms ecological targets, mainly invasive species removal and improved water yield in key catchments.

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