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Mozambique Stock Exchange Prepares First ‘Green Bonds’ Issue

Mozambique Stock Exchange Prepares First ‘Green Bonds’ Issue

The chairmans of the Mozambique Stock Exchange (BVM), Salim Valá, said on Monday 29 January that his institution intends to make the first issue of Green Bonds (financial instruments used to raise capital with the specific aim of financing projects and activities that have environmental benefits) later this year, and is only waiting for the law to be passed.

“I believe that once the normative instruments are approved in 2024, we will have the first sustainable financing issue and it will certainly be a Green Bond issue, because that is what we have been working on with one of the national financial institutions that showed an early interest in its materialisation in Mozambique,” he said.

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He emphasised that the inclusion of sustainable financing products in the securities portfolio “will strengthen Mozambique’s position in international capital markets indices, such as the Absa Financial Markets Index (AFMI)”.

“The absence of this type of product has jeopardised Mozambique’s position in these indices. BVM has been following the possibilities of issuing sustainable finance bonds very closely, including the role taken on by various international institutions to support the transition of African countries to green growth,” he explained.

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According to Salim Valá, “the proceeds from these sustainable bond issues are intended to support the transition to a green economy in Africa, and will support entities’ efforts in the areas of climate change mitigation and adaptation, the creation of sustainable infrastructures, the efficient use of natural resources, forest conservation and biodiversity projects,” he emphasised.

“Since 2022, BVM has been preparing the proposals for the founding document and the draft regulatory instrument for the launch of sustainable financing, which includes Green Bonds and Blue Bonds,” he explained.

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