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Green Bonds

A green bond is a standard bond with green features. A bond is used to raise capital to finance projects. It functions as a loan from investors to issuers (company offering the bond). The investor or
bondholderagrees to give the issuer a certain amountof money for a specific time in exchange for interestsas returns.

A green bond works the same way except that it is used to fund green projects. It states how the issuer will use the proceeds to fund sustainable projects, allowing the bond to be marketed to investors as
green.

Some of the common types of projects are:

tap and benefit from future growth in the fintech space
protect the rights of citizens dealing in virtual assets
encourage innovation in fintech and regtech
provide an enabling regulatory framework that is aligned with international standards
provide an enabling regulatory framework that is aligned with international standards
provide an enabling regulatory framework that is aligned with international standards
provide an enabling regulatory framework that is aligned with international standards

Investments in green bonds represent a unique opportunity for investors to:

Generate significant environmental and social impact in a variety of issue areas, including workforce development, carbon emissions, water quality, waste management and other various environmental initiatives;
Have a potentially transformative model for financing effective environmental programs;
Have a diversified portfolio of investment;
Receive financial returns; amongst others

What are the requirements in Mauritius?

Green bonds, similar to corporate bonds, are regulated by the Financial Services Commission, Mauritius. The Commission has issued the ‘Guidelines for issue of Corporate and Green Bonds in Mauritius’ which is in line with the development of sustainable capital markets in December 2021 (amended in April 2022).

The guidelines, sets the framework on the procedures and processes to issue green bonds either through private placement or publicly and are in line with international best practices.

What is greenwashing?

Greenwashing is a deception tactic employed by issuers that can cause investors to believe its products, services, or mission are more environmentally impactful than it is.

Green bond issuers must endorse a governance structure to ensure that they are not making false or misleading claims about the green credentials of their financial product(s).

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