CORPORATE PROFILE – COLOMBO STOCK EXCHANGE

COLOMBO STOCK EXCHANGE

Q: What are ‘inexperienced bonds’ and what’s the objective of introducing these within the Sri Lankan inventory market?

A: Inexperienced bonds are a type of company debentures, which intention to lift funds which can be invested completely for inexperienced tasks to generate local weather or different environmental advantages as outlined by globally accepted Inexperienced Bond Ideas (GBP). These serve the aim of financing environmentally-friendly initiatives. Their construction is an identical to these of conventional bonds.

Q: What are among the environmental tasks that inexperienced bonds may doubtlessly finance in Sri Lanka?

A: Renewable vitality tasks, waste administration initiatives and ‘waste to vitality’ tasks are choices which have the capability to offer returns on funding (ROI), and align with the aims of inexperienced bonds, making them appropriate candidates for funding.

Q: What are the GBPs, and why are they essential for making certain transparency and accountability in using inexperienced bond proceeds?

A: The Inexperienced Bond Ideas are frameworks established by organisations such because the Worldwide Capital Market Affiliation and Local weather Bonds Initiative. These rules assist to mobilise capital for ‘local weather good’ or environmentally-friendly investments.

They require the institution of sure processes and key efficiency indicators (KPIs), to make sure each qualitative and quantitative reporting necessities. The rules promote transparency and accountability by setting requirements for reporting on using inexperienced bond proceeds. This provides traders confidence that their investments are supporting real inexperienced tasks.

Q: How are inexperienced bonds completely different from company debentures, and what are the buying and selling parameters for inexperienced bonds on the Colombo Inventory Change (CSE)?

A: Inexperienced bonds have extra necessities in comparison with common company bonds. Along with the prevailing disclosure necessities, issuers of inexperienced bonds should adjust to particular processes and KPIs associated to inexperienced tasks.

This contains acquiring certification from a 3rd celebration reviewer or certifier to substantiate conformity with the Inexperienced Bond Ideas. Pre- issuance and post-issuance certifications are additionally required together with a second celebration opinion.

These extra necessities be certain that the funds raised by means of inexperienced bonds are used appropriately. Nonetheless, different persevering with itemizing necessities and the buying and selling parameters for inexperienced bonds on the CSE are just like these for conventional company bonds.

Q: Who can problem inexperienced bonds in Sri Lanka, and what are the advantages of issuing and investing in these?

A: In Sri Lanka, authorities entities and public corporations can problem inexperienced bonds denominated in Sri Lankan Rupees. The advantages of issuing inexperienced bonds embrace the power to lift funds at decrease prices in comparison with different company bonds. Traders are sometimes keen to simply accept decrease yields for inexperienced bonds as a result of they assist environmentally-friendly tasks.

This enables issuers to entry funding from international sources at comparatively decrease prices. Inexperienced bonds additionally contribute to an improved company picture and might entice sustainable traders.

From the angle of traders, investing in inexperienced bonds presents the chance to fulfill sustainable reporting necessities; align with environmental, social and governance (ESG) aims; and entry low danger funding choices with acceptable returns.

Q: How can inexperienced bonds facilitate public-private partnerships (PPP) and the adoption of latest applied sciences in Sri Lanka?

A: Inexperienced bonds can facilitate PPPs by enabling authorities entities to problem inexperienced bonds which can be listed, permitting non-public traders to take part. This opens the door for international traders to subscribe to those authorities bonds. Inexperienced bonds stimulate inexperienced expertise improvements and implementations by attracting low-cost international funds.

This helps Sri Lanka to fulfill its climate- associated aims, akin to these outlined within the Paris Settlement. The adoption of inexperienced bonds additionally enhances geopolitical relationships and attracts international oblique investments (FDI) – as sure traders and governments actively promote funding in inexperienced bonds.

“Inexperienced bonds can facilitate PPPs by enabling govern- ment entities to problem inexperienced bonds which can be listed, permitting non-public traders to take part”

Q: How ought to organisations undertake a holistic method to turning into environmentally sustainable?

A: To undertake a holistic method to environmental sustainability, organisations should prioritise it as a nonvoluntary requirement, contemplating the rising considerations from stakeholders and traders.

Management performs a vital function in setting the tone and driving environmentally aware practices in organisations. It’s important for leaders to guage the prices and advantages of inexperienced practices, and set up processes for his or her adoption. These can embrace lowering one’s carbon footprint, optimising vitality utilization, minimising paper consumption and investing in renewable vitality.

Taking a holistic method requires a complete mindset that encompasses all features of an organisation’s operations, resulting in improved company picture and sustainability.

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