Oman weighs legislation to enable issuance of green, blue and social bonds

CATALYSING INVESTMENT: CMA invites public feedback on draft Regulation for Bonds and Sukuk with the new Sustainable and Responsible Investment (SRI) Bonds and Sukuk Framework

As part of its continuous development efforts to enhance and diversify the capital market in Oman with various types of fundraising instruments to meet the issuers’ and investors’ needs, the Capital Market Authority (CMA) has come up with a new draft Regulation for Bonds and Sukuk which includes the new requirements for Sustainable and Responsible Investment (SRI) bonds and Sukuk meant for the issuance of sustainable, green, blue and social bonds and Sukuk, including waqf Sukuk.

The new draft Regulation for Bonds and Sukuk aims to consolidate and enhance the earlier bonds and Sukuk regulations that were issued separately, said the Authority in a statement.

The move comes as Oman prepares to open up the country to potentially billions of dollars in investment in, among other areas, renewable and alternative energy based projects.

They include mega developments centring on green hydrogen schemes that would ideally be funded by sustainable-type green finance. This broader vision is also in line with Oman’s Vision 2040 objectives.

In addition, the new requirements for SRI bonds and Sukuk aims to encourage capital market fundraising for sustainable development and provide clarity for those who wish to issue such SRI bonds and Sukuk from Oman and attract a wider participation and investor base subscribing to such issuances including foreign investors.

The proposed requirements have been benchmarked against international best practices (including the World Bank) and in line with the United Nation’s Sustainable Development Goals.

“As part of the CMA’S continuous market consultations with the public, we are extending these draft requirements for comments which is available on the CMA’S website. We would greatly appreciate any comments within three weeks from July 7, 2021. The existing draft regulation is not final and any feedback received could be used to enhance these requirements further’’, the Authority added.