PKR 30 Billion Green Bonds to be Issued Soon on Stock Exchange

ISLAMABAD: There is good news for projects launched to tackle climate change in the Pakistan Stock Exchange (PSX). It has been decided to issue green bonds worth Rs 30 billion in PSX this month.

According to sources, this will be the first time in consultation with the International Monetary Fund (IMF) that green bonds will be issued on the stock exchange. The maturity period of these bonds will be about 3 years. The issuance of these bonds will be possible after the approval of the federal cabinet.

An important prerequisite for the IMF’s ‘Resilience and Sustainable Funds Program’ is that Pakistan should seek financing from other sources, including domestic and international to complete climate change projects. The first installment of the RSF will be released after meeting the same condition.

According to sources, the issuance of panda bonds in the Chinese market will no longer be possible. Finance Minister Mohammed Aurangzeb requested a guarantee to issue a $ 30 million panda bond from China Export and Credit Insurance Corporation during a visit to China in July. An adviser has also been appointed for the issuance of Panda Bonds. According to a report by the Ministry of Economic Affairs Division, the launch of Panda Bonds during the current financial year was included in the external financial requirements project and it was to be released during the first quarter of this fiscal year, which was finalized later on the second quarter, but the project will no longer be implemented.

The first instalment of $ 1.30 billion ‘Resilience and Sustainable Funds’ between Pakistan and the IMF will not be released immediately, and 13 goals will have to be implemented to get the full amount. The IMF will also monitor the projects initiated for climate change.