Mauritian office property company Oficea has raised MUR 3.4 billion through a sustainability-linked bond, in a major financing transaction aimed at accelerating the environmental transformation of its real estate portfolio.
MCB Capital Markets advised Oficea on the transaction, which was completed under ER Group’s Sustainable Finance Framework. The bond attracted a diverse pool of institutional investors, including banks, insurance companies and pension funds.
The financing is expected to support Oficea’s target of having more than 70% of its buildings green-certified by 2030. Part of the proceeds will be used to refinance existing debt, while the remainder will support development of The Grid, a new office project in Telfair, Moka, which is targeting LEED Building Design and Construction certification.
The transaction comes as property developers and investors across Africa increasingly turn to sustainable financing structures to support projects that meet environmental performance standards.
Johan Pilot, CEO of ER Property, said the bond reflects a wider strategy by Oficea, ER Property and ER Group to embed sustainability into the development and management of real estate assets.
According to Pilot, the company intends to make environmental performance a central consideration in both future developments and improvements to properties already under management, while maintaining high-quality workplaces for businesses.
The issuance was structured under ER Group’s Sustainable Finance Framework and received an A rating from CARE Ratings. It was also 1.5 times oversubscribed, reflecting strong investor demand for the offer.
Hubert Perdrau, Head of Finance at ER Property, said the financing represents an important milestone in the company’s efforts to integrate sustainability into its long-term financing strategy.
“Our objective is to increase the share of green-certified buildings within our portfolio to more than 70% by 2030,” Perdrau said, adding that the issuance supports the company’s commitment to responsible growth.
Under its sustainability programme, Oficea plans to progressively work towards LEED Operations and Maintenance certification for existing buildings, while new developments and future assets will be designed in line with LEED Building Design and Construction standards.
The strategy covers a range of environmental priorities, including energy efficiency, water stewardship, renewable energy integration, reduction of carbon emissions and improvement of indoor environmental quality.
Oficea has also been expanding the use of photovoltaic installations across its properties. Several buildings in its portfolio are already fitted with solar energy systems capable of meeting about 30% of their electricity needs, while additional solar projects are under development.
At MUR 3.4 billion, the transaction ranks among the largest sustainable financing deals completed in Mauritius and among the largest sustainability-linked bond issuances in Africa, according to the company.
The bond is also significant for the real estate sector because its sustainability performance targets are linked to key performance indicators specifically designed for the property industry.
MCB Capital Markets also advised ER Group on the development of its Sustainable Finance Framework, which was aligned with international best practices, including principles established by the International Capital Market Association. The firm further advised Oficea on the structuring and issuance of the bond.
Rony Lam, CEO of MCB Capital Markets, said the transaction demonstrates how sustainable finance can help property companies fund their transition towards more environmentally responsible operations.
He added that the issuance reflects the growing maturity of Mauritius’ capital markets and their capacity to support large sustainability-focused financing transactions.
Anish Goorah, Senior Vice President at MCB Capital Markets, described the deal as an important step in the development of Mauritius’ debt capital markets, noting that Oficea became the first Mauritian property company to raise MUR 3.4 billion through a sustainability-linked bond.
The transaction also received support from FSD Africa, a UK Government-funded development agency, which financed a Second Party Opinion provided by Moody’s. The independent assessment was intended to strengthen the credibility of ER Group’s sustainability strategy and the bond issuance.
Dr Evans Osano, Chief Financial Markets Officer at FSD Africa, said the issuance demonstrates that Africa’s real estate sector can access sustainable finance at scale and could serve as a reference point for other issuers seeking to mobilise capital towards measurable sustainability outcomes.
Oficea currently develops and manages more than 65,000 square metres of office space across Moka, including Vivéa Business Park, Telfair and Bagatelle. Its portfolio hosts more than 120 companies and about 6,500 professionals. The company operates as ER Property’s dedicated office brand, with ER Property itself being a subsidiary of ER Group.
