FirstRand Sells Bond Tied to Improving Cape Water Catchment

FirstRand Ltd. sold a 2.5 billion rand ($149 million) bond that rewards investors based on improvements in a Cape Town water-catchment area, measured by the removal of invasive vegetation.

The bond is the first issued by a commercial bank that ties investor returns to ecological restoration outcomes, the South African-based lender said in a statement on Wednesday. It was arranged by Rand Merchant Bank, a unit of FirstRand, and backed by International Finance Corp. The Nature Conservancy will implement the vegetation removal program.