The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) signed a Memorandum of Understanding (MoU) today to strengthen cooperation in the development of the ecosystem for the issuance of thematic bonds to achieve the SDGs in Bangladesh.
The signing took place at the BSEC office in Dhaka. According to a UNDP press release, BSEC Chairman Shibli Rubayat-Ul-Islam and UNDP Bangladesh Resident Representative Stefan Liller signed the agreement on behalf of their respective organizations.
Under the terms of this MoU, UNDP Bangladesh will assist in the design of an effect measurement and reporting framework based on UNDP’s SDG effect Standards, as well as in the development of bond allocation and impact reporting.
UNDP is well positioned to provide technical assistance, as well as long-term capacity-building support, to help develop a solid ecosystem for managing SDG theme bonds from pre-issuance to post-issuance, as well as to aid in stakeholder engagement to popularize thematic bonds among issuers and investors.
Speaking at the event, Stefan Liller emphasized the importance of the thematic bond structure and the technical assistance provided.
He stated that the thematic bond framework and relevant technical support will help create an enabling environment for capital mobilization for SDGs achievement in Bangladesh, and that UNDP is committed to collaborating with regulators and providing catalytic support to an ecosystem for SDG financing in Bangladesh, as well as expanding opportunities for the private sector to advance their sustainability initiatives.
“We are very pleased to take this collaboration with BSEC forward with the overall goal of supporting Bangladesh in mobilising new finance to advance Agenda 2030 and Bangladesh’s climate change-related aspirations and commitments,” the UNDP representative said.
BSEC Chairman Shibli Rubayat-Ul-Islam expressed his enthusiasm about the partnership, saying “This initiative is in line with various initiatives that Government of Bangladesh has already taken. BSEC has been successfully pursuing the establishment of a vibrant bond market. We have also included a separate section for green bonds in our Guideline for fixed income securities”.
“I believe popularising the sophisticated green financial products such as thematic bonds or sukuks will ultimately strengthen the overall bond market along with efficient capital mobilization for SDG goal attainment,” he said.
Islam elaborated on the importance of greening the economy and emphasised starting it as soon as possible.
He underscored the necessity of pushing the thematic products initially before the market grabs it spontaneously and assured the commission’s readiness and willingness to support in designing the framework and its initial piloting.
