Know the new sustainability bonds BSEC is set to introduce

The Bangladesh Securities and Exchange Commission (BSEC) has proposed significant amendments to the Debt Securities Rules, 2021, aiming to enhance the country's sustainable finance framework. 

The draft guideline introduces new thematic bonds and update provisions for existing green and social bonds, aligning with international standards and supporting the achievement of Sustainable Development Goals (SDGs).

Newly introduced bonds

Gender Bonds: These are social bonds where proceeds finance projects that promote gender equality and women's empowerment.

Orange Bonds: These focus not only on women's empowermentbut also on advancing the inclusion of marginalised communities, with a broader connection to climate, social, and sustainability goals.

Sustainability Bonds: These combine features of both green and social bonds, funding projects that provide both environmental and social benefits.

Updated provisions for Green and Social bonds

Green Bonds: These are now more clearly defined in line with internationally accepted standards and can be used to finance renewable energy, clean transportation, biodiversity conservation, climate change adaptation, and other green projects.

Social Bonds: These finance projects that deliver measurable social benefits to underserved populations, such as affordable housing, health and education services, employment generation through SME financing, and food security initiatives.

The proposed amendments also set out reporting, monitoring, and disclosure requirements for bond issuers, aiming to attract foreign investment, support SDG achievement, and create innovative tools for responsible fundraising.