Securities and Exchange Commission of Pakistan Reveals Guidelines for the Issuance of Green Bonds 

On the 18th of June 2021, the Securities and Exchange commission of Pakistan (SECP) issued guidelines for the country’s corporate sector to raise funds from capital markets to finance or refinance projects that make a favourable contribution to the environment. According to the guidelines, all issuers eligible to issue debt securities (including Sukuk) via public offering or private placement (under the Companies Act, 2017 and with the Public Offering Regulations, 2017 and Private Placement of Securities Rules, 2017), and that meet the criteria for use of proceeds as stated under the SECP guidelines, will be eligible to issue green bonds.

Why it Matters?

Issuing green bonds will help the issuers of debt securities to diversify their sources of funding, in...