JSE’S Suite of Fixed Income Instruments to Expand by June

• The Jamaica Stock Exchange (JSE) will become the first Caribbean marketplace to facilitate the issuance of green, blue, and other sustainable coloured bonds by the end of June 2024. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, who made the disclosure, said this forms part of the Government’s framework to ensure that financing is available for sustainable initiatives.
• The colours include; blue, which represents marine and green, which represents climate, among others. This will be a very important step because investors who invest in these kinds of instruments want to know that the criteria for calling something green or blue are very firmly established
• Clarke indicated that the JSE “is being supported by the Inter-American Development Bank (IDB) to develop the infrastructure.”
• The Government is working on creating a financial facility as part of efforts to incentivise investments in Jamaica for sustainable projects and working towards partnerships with multilateral and bilateral to provide funding in a way that the Government can leverage its contribution several fold, noted Dr. Clarke. “Those funds will be available on concessional terms for investing in projects that have a green or blue lens, or features to them to incentivise investment in Jamaica that is sustainable”.
• The move aligns with an emerging theme in the global investment space, that of environmental, social, and governance (ESG), which encourages sustainable practices in key areas. It will serve to attract funding from investors who are particularly interested in projects with these mandates.

(Source: JIS)