The United Nations Development Program (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) on Monday signed a memorandum of understanding to strengthen cooperation in the development of the ecosystem for the issuance of thematic bonds to achieve Sustainable Development Goals in Bangladesh.
The signing ceremony was held at the BSEC office in Dhaka, where BSEC chairman Shibli Rubayat-Ul-Islam and UNDP Bangladesh resident representative Stefan Liller signed the agreement on behalf of their respective sides, a UNDP press release said.
Under this MoU, UNDP Bangladesh will help design an impact measurement and reporting framework based on UNDP's SDG Impact Standards and support in developing the bond allocation and impact reporting.
UNDP is well positioned to provide technical assistance accompanied by long-term capacity-building support to build a strong ecosystem to manage SDG thematic bonds from pre-issuance to post-issuance and assist in stakeholder engagement to popularize thematic bonds among issuers and investors.
Stefan Liller emphasized the significance of the thematic bond framework and the technical support provided.
He said that the thematic bond framework and relevant technical support would help create an enabling environment to mobilize capital for SDGs achievement in Bangladesh, and UNDP was committed to collaborating with regulators and providing catalytic support to an ecosystem for SDG financing in Bangladesh, while expanding opportunities for the private sector in advancing their sustainability initiatives.
BSEC chairman Shibli Rubayat-Ul-Islam said: "This initiative is in line with various initiatives that the 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 popularizing 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 added.
Islam elaborated on the importance of greening the economy and emphasized 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.
