Featured Product

    BoM Proposes Guide for Issuance of Sustainable Bonds in Mauritius

    February 03, 2021

    BoM is consulting on a guide for the issuance of sustainable bonds in Mauritius, with the comment period ending on February 17, 2021. The guide on sustainable bonds provides an overview of the requirements and process for the issuance of sustainable bonds and the listing of these bonds on the Stock Exchange of Mauritius. The guide constitutes the first step toward the establishment of a framework for sustainable bonds. It not only seeks to ensure the integrity of the sustainable financing ecosystem in Mauritius but also to prevent greenwashing.

    As part of a roadmap for the implementation of the 2030 Agenda for Sustainable Development, which Mauritius and other UN member states adopted in 2015, it was noted that achieving Mauritius’ ambitious national development priorities would require significant investments in sustainable development. One key recommendation in this context was the development of a green finance framework for Mauritius and the exploration of the issuance of innovative financial instruments, including green bonds. A technical committee was set up to work on the development of the domestic sustainable bonds market in Mauritius. The technical committee noted that providing clear guidance for issuers, investors, and intermediaries, such as verifiers, was a key step toward the establishment and development of a domestic sustainable bonds market. Thus, this guide has been published to ensure the integrity of the sustainable financing ecosystem in Mauritius. The guide is intended for information purposes only, to assist potential issuers in better understanding the legal and regulatory requirements for the issuance of sustainable bonds in Mauritius. 

    The guide defines different types of sustainable bonds, the entities that can issue them, and the reasons for issuing these bonds. As described in the guide, the labeled sustainable bonds universe includes green bonds (including blue bonds and climate bonds), social bonds, and sustainability bonds. The guide provides an overview of the general pre-issuance, issuance, and post-issuance process for a sustainable bond. This is followed by a description of the process for listing a sovereign sustainable bond as well as a sustainable bond issued by a company, on the Stock Exchange of Mauritius. Finally, the guide explains that non-compliance with one or more commitments undertaken under a sustainable bond issue subjects the issuer to the legal and regulatory sanctions, which may include a direction to ensure compliance with the certain regulatory guidelines. In the case of unlisted sustainable bonds, the Financial Services Commission shall communicate to the issuer the breach and authorize the issuer to take remedial steps to rectify the breach, subject to an agreed timeframe. In the case of listed sustainable bonds, in addition to the above, the Stock Exchange of Mauritius shall also communicate to the issuer the breach and authorize the issuer to take remedial steps to rectify the breach, subject to an agreed timeframe, failing which the Stock Exchange of Mauritius shall sanction the issuer as per the provisions of its Listing Rule/DEM Rules.

     

    Related Links

    Comment Due Date: February 17, 2021

    Keywords: Middle East and Africa, Mauritius, Banking, Securities, Green Bonds, Sustainable Finance, ESG, Climate Change Risk, Sustainable Bonds Framework, BoM

    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629