Green bonds have gained legal force

On July the 1st, 2021, the Law of Ukraine “On Capital Markets and Organized Commodity Markets” as of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Concerning Simplification of Attracting Investments and Introduction of New Financial Instruments” №738-IX of June the 19th, 2020 enters into force. The law introduces green bonds as a separate subspecies of securities and establishes rules for market participants.

In particular, Article 11, 18 of the Law establishes:

  • the concept of green bonds and environmental projects (with the definition of specific areas to which funds raised from the issuance of such bonds);
  • the range of issuers of green bonds (with the definition of the legal regime for those who implement and / or finance environmental projects);
  • principles of information disclosure by issuers, reporting procedures and use of revenues that will be attracted from investors to finance and/or refinance the costs of environmental projects.

Relevant legal norms were developed by the State Agency for Energy Efficiency with the support of the GIZ project "Consulting enterprises on energy efficiency" and agreed with other stakeholders in the meetings of the Interdepartmental Working Group on the introduction of the green bond market.

From now on, corporate issuers, namely legal entities of private law (enterprises, corporations, banks, other financial institutions) and international financial organizations have the right to issue green bonds and thus attract funds for the implementation/financing of alternative energy projects, energy efficiency and other environmental projects. directions defined in Article 11, 18 of the Law.

For public issuers, the issue of green bonds will be possible after the Government approves the Procedure for selection and maintenance of environmental projects financed from the state and local budgets, as provided for in paragraph 2 of Article 18 of the Law. We can talk about full-scale market launch after the adoption of the relevant Concept, which will establish the rules of the game and incentives for market participants.

You can get an advice on the procedures for issuing green bonds and clarifying the law from Andriy Yuriyovych Frolov, Head of the Incentive Instruments Department of the State Agency for Energy Efficiency and Energy Saving of Ukraine, tel./fax: +38 (044) 590-59-71; e-mail: a.frolov@saee.gov.ua

Source Government portal


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