The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) have solidified their partnership by signing a Memorandum of Understanding (MoU) aimed at enhancing cooperation and fostering the ecosystem for issuing thematic bonds to achieve the Sustainable Development Goals (SDGs) in Bangladesh. The signing ceremony, held at the BSEC office in Dhaka on Monday, saw BSEC Chairman Shibli Rubayat-Ul-Islam and UNDP Bangladesh Resident Representative Stefan Liller affix their signatures to the agreement.
Under the MoU, UNDP Bangladesh will play a pivotal role in designing an impact measurement and reporting framework based on UNDP’s SDG Impact Standards. Moreover, they will provide assistance in developing bond allocation strategies and impact reporting mechanisms. Leveraging its expertise, UNDP is well-positioned to offer technical support and long-term capacity-building to establish a robust ecosystem for managing SDG thematic bonds, encompassing the entire process from pre-issuance to post-issuance. Additionally, UNDP will engage stakeholders to promote the adoption of thematic bonds among issuers and investors.
Stefan Liller, speaking at the signing ceremony, highlighted the importance of the thematic bond framework and the accompanying technical support. He stressed that these initiatives will create a conducive environment for mobilizing capital in Bangladesh to achieve the SDGs. UNDP is committed to collaborating with regulators, providing catalytic support, and fostering an ecosystem for SDG financing in Bangladesh, while simultaneously expanding opportunities for the private sector to advance their sustainability initiatives.
Expressing enthusiasm about the partnership, BSEC Chairman Shibli Rubayat-Ul-Islam affirmed that this initiative aligns with the various ongoing endeavors of the Government of Bangladesh. He emphasized BSEC’s successful pursuit of establishing a vibrant bond market and the inclusion of a separate section for green bonds in their Guideline for fixed-income securities. Rubayat-Ul-Islam opined that promoting sophisticated green financial products like thematic bonds or sukuks will ultimately fortify the overall bond market and facilitate efficient capital mobilization for achieving the SDG goals. He stressed the urgency of greening the economy and advocated for the early adoption of thematic products, pledging BSEC’s readiness to support in designing and piloting the framework.
The collaboration between UNDP and BSEC represents a significant stride towards directing investments into sustainable development in Bangladesh. By capitalizing on UNDP’s expertise and leveraging BSEC’s regulatory framework, the partnership aims to unlock financing opportunities for SDGs while fostering sustainable practices within the private sector. This joint effort aspires to mobilize fresh capital and promote environmentally friendly financial instruments, thereby contributing to the nation’s sustainable development agenda and climate-related commitments.
