UNDP and BSEC join hands to develop SDG thematic bonds

The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) today (July 3) signed a Memorandum of Understanding (MoU) to strengthen cooperation in the development of the ecosystem for the issuance of thematic bonds to achieve the Sustainable Development Goals (SDG) in Bangladesh.

The signing ceremony was held at the BSEC office in Dhaka. 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 popularise thematic bonds among issuers and investors.

Speaking on the occasion, Stefan Liller emphasised the significance of the thematic bond framework and the technical support provided.

He said the thematic bond framework and relevant technical support will help create an enabling environment to mobilise capital for SDGs achievement in Bangladesh, and UNDP is 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.

"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.