SEC launches guidelines to foster growth, devt of securities market
The Securities and Exchange Commission (SEC) yesterday launched a guideline designed to foster green growth and development of an efficient, and transparent securities market.
Dubbed “Green Bond Guidelines,” it would provide a robust framework for the issuance and management of green bonds in Ghana and safeguard both investor interests and the integrity of the market.
The guidelines which was developed in collaboration with the International Finance Corporation (IFC) was prepared in line with the Green Bond Principles by the International Capital Market Association with funding from the Swiss State Secretariat for Economic Affairs, SECO, and the Swedish International Development Cooperation Agency.
Under the theme; ‘Green Bond Guidelines: Paving the Way for Sustainable Investments,’ the guidelines is expected to support areas of the Ghanaian economy such as green infrastructure, water and waste management, affordable green housing, centralised and distributed renewable energy/ power generation stations, among others to combat climate change, conserve natural resources, and promote a circular economy.
The Director of Financial Sector Division (FSD) of the Ministry of Finance, Mr Sampson Akligoh, who launched the guidelines in Accra, said the guidelines would facilitate the development of a domestic green securities market; maintain credibility of green securities in general through transparency, integrity, and quality; while preventing “green wash” bonds from being issued and invested in.
The FSD Director, who was represented by Mr Andrew Ameckson, Head of Banking and Non-Banking Unit of FSD, said promoting a sustainable greener economy, required investments in new skills, institutions and technologies, and therefore “public money alone will not be enough to address the urgency of the climate crisis we face.”
“We need to have access to private capital like green bonds to help us to push forward the green transition and to invest in our needed infrastructure. Evidently, a financial system that facilitates this transition is indispensable for the global call of action,” he added.
Mr Akligoh said government had made some strides to promote sustainable finance by developing a Sustainable Financing Framework to issue Sustainable Financing Instruments, including Green Bonds, Social Bonds, Sustainability Bonds, as well as Green and Social Loans.
The proceeds, he said would be exclusively used to finance and/ or refinance eligible expenditures falling within the Eligible Green, Social and/or Sustainability Categories.
He indicated that as part of government’s continuous commitment to high-quality public sector green bond issuances, it would be updating the Sustainable Financing Framework to align with the evolving global taxonomy for green activities with all key stakeholders.
Again, he said the government was promoting the establishment of an International Financial Services Centre (IFSC) to position the country as a strategic hub for international/regional finance aimed to develop carbon debt markets and green finance markets to serve the West Africa region.
The FSD director maintained that, just like most African countries, Ghana needed about $22.6billion investments from domestic and international public and private sources to finance its climate action.
“As a result, today’s launch marks a critical milestone to achieving this ambition to address climate-linked crisis in Ghana,” he stated.
The Director-General, SEC, Reverend Daniel Ogbarmey Tetteh, called on market operators to take advantage of the guidelines and create products to advance the capital market as well as asset owners such as pension funds to incorporate green issuances or products in their investment portfolios or asset allocations.
The Senior Country Manager, Ghana Country Cluster, IFC, Kyle Kelhofer, for his part, expressed IFC’s commitment to supporting the green economy.
BY VIVIAN ARTHUR
