Companies in talks with CSE to list green bonds

Certain companies have shown interest in the newly introduced green bonds of the Colombo Stock Exchange (CSE), officials said.

“We have met some of them and are discussing the forward procedure,” Nilupa Perera, Senior Vice President Broker Supervision and Listed Entity Compliance at the CSE told the Business Times recently on the sidelines of an awareness session on regulatory initiatives, new products, and sustainability initiatives organised by the market operator.

The CSE announced the introduction of listing and trading of Green Bonds for the first time in the Sri Lankan stock market 8-months ago. Green Bonds are any type of bond instrument where the proceeds will be exclusively applied to finance or refinance, in part or in full, new and/ or existing eligible green projects that are aligned with at least one of the International Green Bond standards set out in the CSE listing rules.

The CSE also introduced Blue Bonds, which are any type of bond instrument where the proceeds will be exclusively applied to finance or refinance, green projects, like in Green Bonds.

The green projects entail those that generate climate or other environmental benefits, such as renewable energy, energy efficiency, sustainable waste management, sustainable land use such as forestry and agriculture, biodiversity, clean transportation, and clean water.

Renuke Wijayawardhane, Chief Regulatory Officer CSE told the Business Times that Blue Bonds deal with marine coast conservation. Here, the issuer will use the capital raised to aid investments in oceans and blue economies linked with Sustainable Development Goals.

Analysts say that marine tourism, offshore renewable wind and wave energy, and marine protected areas have the greatest ability for effective Blue Bond investment.