The Financial Express

Public opinion sought on draft rules for issuance of debt securities

FE Report | Published: June 05, 2020 10:07:07 | Updated: June 07, 2020 10:31:27

Public opinion sought on draft rules for issuance of debt securities

The securities regulator has sought public opinion on the draft rules formulated for issuance of debt securities including the green bond.

The stakeholders will be allowed to submit their opinions on the draft rules titled 'Bangladesh Securities and Exchange Commission (Debt Securities) Rules, 2019 by June 17.

After getting public opinions, the Bangladesh Securities and Exchange Commission (BSEC) will give its final approval to the rules.

The rules shall be applicable for issuance of all types of debt securities, sukuk, asset backed securities, and such other securities through public issue or private offer as decided by the commission from time to time.

The proposed debt securities rules has also paved the way for launching green financing through the issuance of green bonds whose proceeds will be used to generate measurable climate and environmental impact in addition to financial returns.

Eligible sectors for green bond financing include renewable energy, energy efficiency, pollution prevention and control, environment sustainability, water and waste, transportation, climate change, eco-friendly production, and green buildings.

According to draft rules, the issuer or originator, other than statutory body or trust, shall be a public limited company havinga minimum existing paid-up capital of Tk 150 million.

For issuer, other than banks, financial institutions, insurance companies or trust, total debt of the issuer including the proposed issue along with preference share, if any, will not exceed 80 per cent of total tangible assets.


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