UNDP, BSEC team up to develop SDG thematic bonds

The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) have joined hands to strengthen cooperation in the development of the ecosystem for the issuance of thematic bonds to achieve the Sustainable Development Goals (SDG) in Bangladesh. 

The two parties signed a Memorandum of Understanding (MoU) to this end at the BSEC office in the capital on Monday, reads a press statement.

BSEC Chairman Shibli Rubayat-Ul-Islam and UNDP Bangladesh Resident Representative, Stefan Liller, signed the agreement on behalf of their respective organisations.

Under the MoU, UNDP Bangladesh will help design an impact measurement and reporting framework based on UNDP's SDG Impact Standards, and support in developing the bond allocation and impact reporting.

The UNDP is well positioned to provide technical assistance accompanied by long-term capacity-building support to build a strong ecosystem to manage SDG thematic bonds from pre-issuance to post-issuance and assist in stakeholder engagement to popularise thematic bonds among issuers and investors, said the press statement. 

On the occasion, Stefan Liller, UNDP Bangladesh resident representative, said, "The thematic bond framework and relevant technical support will help create an enabling environment to mobilise capital for SDGs achievement in Bangladesh.

"UNDP is committed to collaborating with regulators and providing catalytic support to an ecosystem for SDG financing in Bangladesh, while expanding opportunities for the private sector in advancing their sustainability initiatives.

"We are very pleased to take this collaboration with BSEC forward with the overall goal of supporting Bangladesh in mobilising new finance to advance Agenda 2030 and Bangladesh's climate change-related aspirations and commitments." 

BSEC Chairman Shibli Rubayat-Ul-Islam said, "This initiative is in line with various initiatives that the government has already taken. BSEC has been successfully pursuing the establishment of a vibrant bond market. We have also included a separate section for green bonds in our Guideline for fixed income securities.

"I believe, popularising the sophisticated green financial products such as thematic bonds or sukuks will ultimately strengthen the overall bond market along with efficient capital mobilisation for SDG goal attainment."

Besides, he underscored the necessity of pushing the thematic products initially before the market grabs it spontaneously

He said the commission is ready and willing to support in designing the framework and its initial piloting.