Explain the obligations of issuer of Green Debt Securities.

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2023
Explain the obligations of issuer of Green Debt Securities.

Answer & Explanation:

An issuer of Green Debt Securities shall: Maintain a decision-making process which it uses to determine the continuing eligibility of the project(s) and/or asset(s). This includes, without limitation a statement on the environmental objectives of the Green Debt Securities and a process to determine whether the project(s) and/or asset(s) meet the eligibility requirements. Ensure that all project(s) and/or asset(s) funded by the proceeds of Green Debt Securities, meet the documented objectives of Green Debt Securities. Utilize the proceeds only for the stated purpose, as disclosed in the offer document. An issuer of Green Debt Securities or any agent appointed by the issuer, if follows any globally accepted standard(s) for the issuance of Green Debt Securities including measurement of the environmental impact, identification of the project(s) and/or asset(s), utilisation of proceeds, etc., shall disclose the same in the offer document/disclosure document and/or in continuous disclosures.

Topics: Debt Instruments

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