This development comes at a time when the global sustainable bond market is experiencing rapid growth, driven by increasing awareness of climate change risks and their potential financial impact.
Green bonds remain the dominant instrument in the sustainable bond market, with growing demand for such bonds as well as other sustainable financial products. In response to this demand and the mounting climate change risks, Rwanda has adopted an ambitious strategy to establish itself as an International Financial Centre.
The newly released GSS+ Bond Guidelinesprovide a comprehensive regulatory framework for the public issuance and listing of GSS+ bonds in Rwanda. These guidelines are designed to complement the country's existing debt securities laws, ensuring a consistent and robust approach to sustainable finance.
Thapelo Tsheole, the CEO of CMA, highlighted that these guidelines focus primarily on public issuance and do not cover private issuance or multi-jurisdictional issuance of GSS+ bonds.
"However, the framework seeks to create securities that are internationally credible, replicable, and attractive to global investors," he said.
Tsheole also emphasized that the GSS+ Bonds Guidelines are based on international principles set by renowned organizations such as the International Capital Markets Association (ICMA) and the Climate Bonds Initiative (CBI), aligning Rwanda's sustainable finance efforts with global best practices.
This regulatory initiative underscores Rwanda's commitment to innovation and resilience in the face of global financial and environmental challenges, positioning the country as a leader in sustainable finance.
IGIHE
