Green bonds a socially responsible investment: CMA

Business Monday 21/March/2022 15:31 PM
By: Times News Service
Green bonds a socially responsible investment: CMA

Muscat: The Capital Market Authority (CMA) organised a seminar to highlight the Moroccan experience in this type of financing and the regulatory frameworks needed for green and sustainable financing at the Oman Chamber of Commerce and Industry.

The seminar was attended by representatives of different government and private sector economic entities and comes after the signing of a memorandum of understanding between the CMA of Oman and the Capital Market Authority of the Kingdom of Morocco for cooperation and exchange of information.

The seminar included a working paper presented by the Moroccan Capital Market Authority on the regulatory frameworks of green financing, the realities of the market, its contribution in directing investments toward economic activities that strike balance between economic, environmental and social objects to improve the welfare of human being and to limit the impact of global challenges such as climate change.

Yaser Al Monsif, Operations and Information Director at the Moroccan CMA said the Moroccan experience is 6 years old with green financing volume at $450 million in the Moroccan market. He said six issuances have been issued since 2016 pointing out the ideal standards for specifying the returns and whether or not the instrument is green, the nature of the issuers about volumes of the issuances and the types of funded activities which represented an addition to the Moroccan capital market.

He also pointed out to the nature of targeted investors emphasising that it opens the way for individuals and institutions, the attractiveness of the financing instruments compared to the conventional instruments, the methods of regulation of the issuers, violations and penalties.

Abdullah Hilal Al Siyabi, Director of Companies Affairs talked about CMA’s preparations for green financing and the alignment of the regulatory framework emphasizing that the motivation for such move is to achieve the objectives of sustainable development, Oman Vision 2040 and balancing between economic objectives, natural resources and environmental requirements to preserve the sustainability of such vital resources and enhancing the financial returns for the longest possible term.

Al Siyabi pointed out in his presentation to the green bonds and Sukuk targeting socially responsible investors, which is one of the objects of the strategic plan of the CMA 2021-2025 as well as other initiatives.

It is worth noting that global green financing witnessed rapid growth in the past decade including green bonds and Sukuk, green loans, green funds and green insurance.