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GSE launches Green Bond Rules at its 32nd anniversary celebration

The Ghana Stock Exchange (GSE), together with its regulator, the Securities and Exchange Commission, has introduced new Green and Sustainable Bond Rules to govern the listing and trading of green and sustainable bonds on the Ghanaian market as part of celebrations for the GSE’s 32nd anniversary.

The topic for the celebration this year was “Investing in a Green and Sustainable Future.”

Green bonds support new or ongoing projects that have a positive impact on the environment or the climate and adhere to the Green Guidelines and Standards, whereas sustainable bonds support new or ongoing projects that have a positive impact on both the environment and society and adhere to the Sustainability Guidelines.

The European Investment Bank released the first green bond in 2007 under the name climate awareness bond. The finance sector continues to be a crucial route for economies all over the world to have a genuine influence because of its role in effectively allocating money.

As a result, using the financial market is the most effective approach to fight climate change and still turn a profit. Mr. Aliou Maiga, the IFC’s Regional Industry Director for the Financial Institutions Group in Africa, gave the keynote address during the occasion.

“I applaud Ghana and the Ghana Stock Exchange for taking the lead in sustainable and green financing. In addition to being essential for development, climate financing represents a major commercial opportunity. In order to encourage investments that lower greenhouse gas emissions and aid in climate change adaption, IFC is dedicated to engaging with Ghana’s stakeholders, he continued.

The Securities and Exchange Commission’s Director General, Rev. Daniel Ogbamey-Tetteh, said during his speech at the event that “investment in a green and sustainable future is both well timed and opportune. Sustainability is a vast topic supported by three pillars: social, economic, and environmental, none of which can be disregarded. For many business leaders, it is the most important challenge we are facing right now.

However, there is proof that sustainability and a company’s long-term success are related. Investors all across the world are clamoring for chances to invest in businesses or securities with robust ESG markets.

Victor Nkiiri, Senior Financial Markets Specialist at Financial Sector Deepening Africa (FSD Africa), gave a message of goodwill at the event and hinted that “at FSD Africa, we see the development of capital markets to an end, to increase income and job creation, access to basic services, and building of sustainable futures. Deeply liquid markets are essential for economic growth because they direct domestic long-term savings to the most beneficial uses.

“Green and Sustainable Bonds have gained popularity globally due to the significant benefits it delivers to the environment and society at large,” stated the Managing Director of GSE, Ekow Afedzie, in his remarks. Over the past few years, GSE has been strongly devoted to environmental activities, which culminated in our July acceptance to the UN Sustainable Exchanges.

Another indication of their dedication to this sustainable journey is the release of the ESG Disclosure Manual Guidelines in November of this year.

Listed companies in Ghana can now generate money to support ESG activities by utilizing these rapidly expanding bond investment instruments.


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