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Pakistan’s securities regulator has published guidelines for the issuance of green bonds in the country.
The regulator says the guidelines “provide an easy and efficient procedure for issuance”, and apply to all issuers who are eligible to issue debt securities.
The Securities and Exchange Commission of Pakistan (SECP) says green bonds will help initiate sustainable projects in the fight against climate change as well as giving issuers of debt securities the opportunity to diversify their sources of financing. It will also provide eco-conscious investors the opportunity to finance projects that support the environment.
In order to qualify as ‘green’, a bond’s proceeds must finance or refinance projects that promote energy efficiency, protect the environment, utilise renewables, mitigate pollution and preserve water, among others.
In its statement announcing the guidelines, the regulator details how green bonds worth $1.2 trillion have been issued across the globe, with the trend increasing YoY. According to the International Capital Markets Association, a total of 640 green bonds have been issued by 60 countries, based on globally accepted standards such as the association’s own Green Bond Principles and the United Nations’ Sustainable Development Goals.
