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Deepening domestic capital markets through first green bond issuance

2023
Deepening domestic capital markets through first green bond issuance
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Relevant Topic(s) Tags

Technical Assistance & Project Preparation
Thematic Bonds
Climate Policies & Frameworks

Summary

In October 2023, ENL Group Renewable Energy Arm - EnVolt - issued the first $11M of a planned $45M green bond programme. MCB Capital Market and FSD Africa helped structure this round, which will finance the construction and operationalisation of thirteen new solar farms in Mauritius. This marked the first green project bond issuance for renewable energy in Mauritius and the first of their kind issued under the ICMA Green Bond Principles in the country. This issuance was a landmark transaction for the Southern African Development Community (SADC) Green Bond Programme. The programme, funded by FSD Africa and implemented by the Committee of SADC Stock Exchange (CoSSe), aims to support the development of guidelines and regulations for green bonds and to develop a pipeline of potential issuers. The Mauritius transaction follows other key regional successes of the programme, including the revision of the Dar es Salaam Stock Exchange to allow for the issuance of sustainability-linked capital market instruments in Tanzania as of April 2022.

Key Takeaways:

Creating proof points: Introducing innovative instruments such as green bonds in new geographies helps establish precedents and build proof points, strengthening domestic capital markets.

Regional momentum: Landmark transactions not only deepen capital markets in the country but also help create positive momentum and a race to the top for the whole region.

Quality Assurance: Following global standards such as Green Bond Principles, which provide clarity on eligible projects and evaluation of their environmental claims, helps build credibility for innovative instruments in new markets.

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Author Organization(s)
FSD Africa
Relevant Tags
Financing & Deploying Capital
Relevant Sector
Energy Generation (Renewables, Oil & Gas, Coal)
Featured Organization(s)
EnVolt
MCB Capital Markets
FSD Africa
Committee of SADC Stock Exchange (CoSSE)
Type of Featured Organization or Stakeholders
Real Economy Corporates
Technical Assistance Providers
Banks
Relevant Asset Classes & Other Instruments
Debt / Fixed Income
Geography
Mauritius
Original Language
English

Learn More Link(s)

SADC Green Bonds Programme

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Deepening domestic capital markets through first green bond issuance | Global Capacity Building Coalition