The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines to issue green bonds in Pakistan. The guidelines give an easy and efficient procedure for the issuance with the concise offering of documents/prospectus.
All the issuers who are eligible to issue debt securities, including Sukuk, either by way of a public offer or private placement are also eligible to issue green bonds in compliance with the applicable regulatory framework.
The issuance of green bonds will support to initiation of sustainable projects for the combating of climate change besides facilitating the issuers of debt securities to diversify their sources of financing.
It will also provide an additional financing instrument to investors who are conscious of financing/re-financing projects that contribute to the environment.
To qualify as a green bond, the proceeds must finance or refinance green projects or activities that involve energy efficiency, protect the environment, utilize renewable energy, prevent and control pollution, use natural resources, land management, pollution-free transportation, wastewater, and water treatment, etc.