Key Impact Points:
- Boost Sustainable Financing: The new guide aims to accelerate the issuance of Green, Social, Sustainability, and Sustainability-Linked Bonds in Jamaica.
- Global Standards Alignment: Aligns with International Capital Market Association (ICMA) Principles to ensure transparency and integrity.
- Attract Investments: Targets to draw local and international investors towards projects with positive environmental and social impacts.
Jamaica is making strides towards sustainable financing with the release of a comprehensive guide for issuing Green, Social, Sustainability, and Sustainability-Linked Bonds (GSS+). Developed through a collaboration between the Jamaica Stock Exchange (JSE) and the Inter-American Investment Corporation (IDB Invest), with technical support from HPL.LLC, this guide provides the tools necessary for the Jamaican market to thrive in thematic bond issuance.
Why it matters:
“These instruments allow issuers to promote sustainable opportunities in the country,” the guide states. The GSS+ bonds are designed to finance projects that yield significant environmental and social benefits, thereby contributing to Jamaica’s climate goals and sustainable development agenda.
What’s in the guide:
- Detailed Framework: The guide offers a clear framework for bond issuance, including definitions, principles, and taxonomies aligned with ICMA standards.
- Best Practices: Recommendations on best market practices ensure the transparency and integrity of bond issuances.
- Corporate Governance: Emphasizes robust corporate governance as a crucial element for issuers.
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“This guide builds on the requirements for bond issuance regulation in Jamaica by providing additional information on what is needed for GSS+ bonds,” the guide explains. This move is expected to “catalyze the Jamaican market by representing an opportunity to attract investments with positive environmental and social impact in the country.”
The Bigger Picture:
Thematic bonds are gaining traction globally, and Jamaica’s new guide positions the country to be a leader in the Caribbean. The guide outlines the necessary steps for issuers, from assessment to reporting, ensuring that the bonds meet international standards and appeal to a broad range of investors.
What’s Next:
Jamaica aims to leverage this guide to unlock financial flows that support its sustainability agenda, including the transition to a low-carbon economy and addressing social inequalities. The focus on thematic bonds will diversify financing sources and expand the investor base, crucial for the country’s economic growth and resilience.
For more insights and detailed information, refer to the GSS+ Bond Guide for Jamaica.
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