Oficea, a Mauritius-based real estate company, has raised MUR3.4 billion through a sustainable bond issuance, in a transaction that represents one of the largest sustainable finance deals in Mauritius and highlights increasing investor appetite for environmentally focused projects across African capital markets. The bond, advised by MCB Capital Markets (MCBCM), was 1.5 times oversubscribed, attracting institutional investors such as banks, insurance companies, and pension funds. The issuance, completed under ER Group’s Sustainable Finance Framework, received an A rating from CARE Ratings and will fund the refinance of existing debt and the development of The Grid, Oficea’s new office complex in Telfair, Moka, targeting LEED Building Design and Construction certification.
The transaction aligns with Oficea’s strategy to increase the proportion of green-certified buildings in its portfolio to over 70% by 2030. Johan Pilot, CEO of ER Property, emphasized the group’s commitment to integrating sustainability into real estate development, stating, “Our goal is to make environmental performance an integral part of our real estate decisions while continuing to provide high-quality workplaces for the businesses we serve.” The company plans to pursue LEED Operations & Maintenance certification for existing buildings, with new developments adhering to LEED BD+C standards. Oficea has already installed photovoltaic systems across several properties, with solar energy meeting approximately 30% of electricity needs in some buildings.
MCBCM also advised ER Group on developing its Sustainable Finance Framework, aligning with International Capital Market Association principles. Rony Lam, CEO of MCB Capital Markets, highlighted the transaction’s role in demonstrating how sustainable finance can drive property sector transformation, noting the growing maturity of Mauritius’ capital markets. The deal received support from FSD Africa, which funded a Second Party Opinion by Moody’s on the sustainability framework. Evans Osano, FSD Africa’s chief financial markets officer, stated the transaction underscores Africa’s real estate sector’s capacity to access sustainable finance at scale, potentially setting a precedent for other issuers seeking capital tied to measurable sustainability outcomes.
The issuance underscores broader trends in African capital markets, where green finance is gaining traction as a tool for environmental and economic development. By prioritizing energy efficiency, water management, renewable energy, and carbon reduction, Oficea’s strategy reflects a shift toward sustainable urban development. The deal also highlights the role of institutional investors and regulatory frameworks in advancing climate-conscious real estate practices, offering a model for similar initiatives across the continent.