The World Bank Sustainable Finance and ESG Advisory services team facilitates the development of green, blue and social bond markets in emerging markets through pre- and post-issuance technical assistance for issuers.
Pre-issuance technical assistance:
- Sharing international best practices and requirements for issuing green bonds
- Developing an action plan/roadmap for the issuance
- Developing a Green Bond Framework
- Helping to identify eligible green categories/projects based on national priorities and Paris Agreement commitments
- Facilitating the delivery of second opinions/verifications/certification of the Green Bond Framework by an independent third party reviewer
- Advising on reporting commitment and communication strategy
- Developing use of proceeds and impact report
Post-issuance technical assistance:
- Clarifying the processes and helping issuers understand how to use the standardized impact reporting template in a manner that meets global standards.
- Explaining information required, including baselines and indicators to measure the impact of selected green projects.
- Recommending work process flows and timeline for reporting in line with the Green Bond Framework.
- Preparing terms of reference for the Auditor to provide the annual assurance report in accordance with the Green Bond Framework.
- Delivering digital templates for use by technical staff for monitoring and reporting.
- Reviewing and providing feedback on draft prepared by the issuers.
Capacity building for institutional investors on setting up Environmental, Social and Governance (ESG) strategies
- Delivering workshops on ESG and Responsible Investment (RI) trends, approaches and strategies
- Undertaking desk review of investor’s individual investment objectives, policies and strategies
- Developing general guidelines for ESG/RI policies and approaches, including
- Criteria for developing an ESG/RI Policy and implications for investment processes
- Organizational setup, governance and operational processes
- Choosing ESG approaches to support investment objectives and mission alignment
- Stewardship, responsible ownership and engagement
- Reporting and disclosure
- Developing individual ESG/RI integration approaches
- Delivering a workshop on implementation of ESG/RI Integration Strategies and Approaches
Examples of our work:
- With technical assistance from World Bank Treasury, a Malaysian issuer issued the world’s first green sukuk/Islamic Bond.
- Malaysian rating agencies (RAM Ratings and Malaysian Rating Corporation Berhad) and Malaysian Green Technology Corporation established methodologies for green bond/sukuk assessment/rating with knowledge transfer and capacity building facilitated by World Bank Treasury.
- Ministry of Finance of Indonesia issued the first sovereign green sukuk in the world in February 2018.
- With technical assistance from World Bank Treasury, Fiji and Nigeria issued sovereign green bonds.
- With technical assistance from World Bank Treasury, the ASEAN Capital Markets Forum developed the ASEAN Green Bond Standards and Sustainable Bond Guidelines.
- With guidance from World Bank Treasury, Indonesian Financial Services Authority developed Green Bond Regulations.
- With technical assistance from World Bank Treasury, PT SMI, a state-owned enterprise, issued the first corporate green bond in Indonesia.
- With technical assistance from World Bank Treasury, the Indonesian ministry of finance and PT SMI (Indonesian state-owned enterprise) developed their first post-issuance green Sukuk and green bond impact reports.
- The World Bank Treasury structured a new Blue Bond market instrument to help the government of Seychelles mobilize private sector capital into sustainable fishing, marine spatial planning, aquaculture and biodiversity. TRE structured the bond, combining an IBRD guarantee and a commitment from Global Environment Facility (GEF) to bring the transaction to market at favorable terms.
Contact: Farah Hussain, Senior Financial Officer, World Bank Treasury at fhussain@worldbank.org
