Global Program on Sustainable Finance Instruments: Scaling-up Thematic Bond Markets in Developing Countries

The intervention delivers demand-led technical assistance to public and private actors across developing countries to raise USD 2 billion earmarked to NDC, SDG and green recovery targets through the issuance of thematic bonds. This is achieved through four Outcomes: 1. National policy frameworks are enhanced: supporting financial regulators to develop regulatory frameworks and guidelines to mitigate perceived thematic bond risks, lift barriers to issuance and promote alignment with international standards. 2. Capacity of prospective issuers enhanced: in collaboration with Luxemburg Green Exchange and LGX Academy (LGX) deliver capacity building webinars targeting potential issuers, stock exchanges and regulators, followed by bilateral on-the-job training to incentive and promote issuances. Country-level capacity building will be complemented by international learning networks, providing a platform for capital market actors across geographies to receive specialized training, share lessons learned, and recommendations. 3. USD 2 billion mobilized for NDC and SDG activities via thematic bond issuances: delivering pre- and post-issuance support to prospective issuers. GGGI will support the development of issuance strategies, bond frameworks, processes for project selection and evaluation, impact reporting and management of proceeds. GGGI will assist the development, evaluation and selection of underlying project portfolios and support SPO processes to demonstrate alignment with NDCs and SDGs targets. Following the issuance, GGGI will support issuers prepare impact and allocation reports to ensure monitoring and reporting of environmental and social benefits 4. Program knowledge is shared: promoting knowledge sharing via participation to events and case studies. The project will leverage its broad base of beneficiaries to collect recommendations and share these with ICMA’s members and other relevant stakeholders.