The First Green Bond in Mongolia Registered www.montsame.mn
The Financial Regulatory Commission has registered the first green bond in Mongolia. The Financial Regulatory Commission (FRC) emphasizes that this is the first "Green Bond" assessed by the international organization Sustainable Fitch as meeting the principles of green bonds.
Khan Bank plans to issue the green bond without collateral in accordance with its credit rating calculated by an international credit rating agency and to implement a major mid-term goal of intensively increasing its green financing portfolio to finance environmentally friendly activities.
In 2021 FRC approved a new procedure for issuing green bonds, which play a significant role in the development of green financing in the country. In May 2020 FRC signed a Memorandum of Understanding with the International Finance Corporation (IFC), a member organization of the World Bank Group to solve the environmental problems facing Mongolia by increasing green financing.
According to the Memorandum IFC supported the development of procedures to regulate relations regarding issuance of green bonds and its registration in conformity with internationally recognized principles. The FRC supported and cooperated in including the regulations related to this relation in the newly approved "Procedure on Registration of Company's Debt Instruments." The establishment of this arrangement will be a step to support the development of the domestic "Green Bond" market for financing environmentally friendly and green projects in Mongolia.
At the international level, green bonds are widely used to attract investments required to reduce the negative effects of climate change, increase energy efficiency, and solve waste problems.
Published Date:2023-06-14