Sustainable Finance Themes in Asia
Date: Oct 25,2023
Time: 20:00 to 21:00 (KST/GMT+9)
Video
Overview:
Green, Social, Sustainability, and Sustainability-linked (GSSS) Bonds provide valuable additional resources to financing SDG-related projects, particularly in developing and emerging markets. At a time when bank lending is limited, GSSS bonds allow issuers to diversify their sources of funding and provide an alternative to conventional financing which can often be more expensive. Crucially, GSSS bonds provide long-term financing, firstly as the timing of green infrastructure projects’ cash flows is generally compatible with bonds issuance – what the report terms “the Greenium”. Secondly, given the short maturity of bank liabilities and a lack of instruments for hedging duration risks, the capacity of banks to provide long-term green loans is constrained in many countries. This session will focus on the gaps that hinder a greater take-up of the bonds market: the role of development entities, government stakeholders, and private sector players in the country; the importance of tailoring issuance to local contexts; the need for risk mitigation strategies; capacity development to address supply constraints; and promotion of transparency and taxonomies. Furthermore, during the session, we would discuss the learnings and support that is needed in order to support the development of a strong enabling environment, one such requirement is to have a well-functioning financial market, before stimulating GSS bond issuances, in particular, this would require supporting the following: Legal & regulatory frameworks that address creditor rights etc.
Event Agenda: