IFC to support Bangladesh's bond market development
The International Finance Corporation (IFC) of the World Bank Group will support Bangladesh in the development of its bond market and corporate governance.
To this end, the IFC held a bilateral meeting with the Bangladesh Securities and Exchange Commission (BSEC) on Thursday. A cooperation agreement was signed between the two sides during the meeting.
BSEC Chairman Professor Shibli Rubayat-Ul-Islam, Commissioner Shaikh Shamsuddin Ahmed, and Executive Director Rezaul Karim attended the meeting on behalf of the commission. While Martin Holtmann, country manager for Bangladesh, Bhutan, and Nepal, and Lopa Rahman, operations officer (ESG Advisory, South Asia), attended the meeting on behalf of IFC.
Through this agreement, four objectives will be achieved. These include strengthening the environment, social, and governance (ESG) regulatory and reporting framework, supporting the development of a framework for sustainable bonds (including blue, green, and pink bonds), and IFC working closely with the BSEC to review the corporate governance code.
The IFC will cooperate in developing environmental social management systems, including improving due diligence standards and corporate governance practices among financial institutions. The real sector will help clients overcome investment barriers and improve the performance of IFC's portfolio companies.
Besides, through this agreement, IFC will help to develop Bangladesh's labeled bond market (green, social, sustainable, climate, and blue bonds). IFC will also assist BSEC in implementing the National Sustainable Bond Guidelines, in addition to building the capacity of sustainability bond service providers in the country and promoting the concept of such bonds.
At the meeting, Martin Holtmann said, "The National Sustainability Bond Guidelines will help mobilise finance for the development of the blue and green economy in Bangladesh, and IFC is committed to improving environmental, social, and governance practices in the country as part of this effort initiated in partnership with the Swiss State Secretariat for Economic Affairs (SECO)."
"We are also very fortunate to have the excellent cooperation of BSEC in this important effort," he added.