BSEC, UNDP partner to develop sustainable finance, thematic bonds

The Bangladesh Securities and Exchange Commission (BSEC) and the United Nations Development Programme (UNDP) signed a Memorandum of Understanding (MoU) on Wednesday to foster sustainable finance and develop the thematic bond market in Bangladesh.

The agreement, titled 'Sustainable Finance Collaboration,' was signed at the BSEC headquarters in Agargaon, Dhaka. BSEC Chairman Khondoker Rashed Maqsood and UNDP Bangladesh Resident Representative Stefan Liller signed the document on behalf of their respective organisations.

Under the MoU, UNDP Bangladesh will provide comprehensive technical assistance to introduce a sustainable finance and investment taxonomy. The collaboration aims to support thematic bond issuers – covering green, social, climate, and SDG bonds – throughout the entire process, from pre-issuance to post-issuance.

Key areas of cooperation include training for BSEC officials and stakeholders, sharing experiences from other emerging economies, and ensuring the proper utilisation of funds raised through these bonds. 

The partnership will also focus on enhancing project monitoring, bond reporting, and introducing international-standard impact measurement and management frameworks. Furthermore, UNDP will help develop third-party verification systems and risk mitigation strategies for issuers.

Speaking at the event, BSEC Chairman Khondoker Rashed Maqsood said the commission is committed to the continuous improvement of market management.

"We are working to build a strong and credible market structure by strengthening good governance, increasing transparency, and boosting investor confidence," Maqsood said.

He added that the partnership would ensure a supportive and predictable regulatory environment, ultimately establishing the capital market as a primary source for long-term financing and thematic bond development.

UNDP Resident Representative Stefan Liller highlighted the untapped potential of the local capital market in raising long-term capital for high-impact environmental and social investments.

"Increasing investment in various sectors, including addressing climate-related risks, is essential to sustain economic momentum, graduate from Least Developed Country (LDC) status, and avoid the middle-income trap," Liller said.

He noted that thematic bonds could play a catalytic role in raising both domestic and international capital.

The signing ceremony was attended by UNDP Country Economic Advisor Owais Parray, BSEC Commissioners Ali Akbar and Farzana Lalarukh, along with senior officials from both institutions.