A Green Bond is a fixed income or debt security instrument, either unlisted or listed on a securities exchange, approved by the SEC, whose proceeds are used to finance or refinance new or existing projects that generate climate or other environmental benefits that conform to green guidelines and standards. What do the guidelines provide for: The guidelines provide guidance on various aspects and stages of the green bond process. The following are covered:
Use of Proceeds:
Guides on the need for issuers to highlight from the onset, through a documented
green bond framework, the intended use of proceeds. This must be in line with approved green project.
Disclosure on Project Selection Process:
Guides on the need for issuers to highlight from the onset, through a documented green bond framework, how eligible projects will be selected and that this is inline with approved green projects.
Management of Proceeds:
Guides on the need for issuers to highlight from the onset, how funds will be managed during the duration of the bond e.g. any placements to be made for unallocated funds as they await allocation towards the project?