Transforming Finance for a Sustainable Economy
The JSE’s Green Bond Plus market offers a transparent and accessible platform for asset owners and managers to discover sustainable securities and access their related documentation. By adhering to industry best practices and standards, the Jamaica Stock Exchange has launched the first platform in the English-speaking Caribbean dedicated to the issuance and trading of Green, Social, Sustainability, and Sustainability-Linked bonds (“GSS+” or “thematic” bonds).
Thematic bonds (which include both Use of Proceeds and Sustainability-Linked Bonds (SLBs), like traditional bonds issued on the JSE, must follow the JSE Rules and Regulations, which govern JSE’s operations and provide the platform for an efficient and transparent market. A checklist summarizing these regulatory requirements is provided in Annex 2: Checklist of Listing Requirements for JSE. In addition to regulatory requirements, GSS+ bonds must follow the ICMA Principles which are sets of voluntary guidelines, to which over 95% of thematic bonds are aligned. Therefore, the market has globally accepted the Principles as the main guidelines for GSS+ bonds, and they are the foundation for regional and national guidelines.
The Jamaica Green, Social, Sustainability, and Sustainability-Linked Bonds Guide, published on May 31, 2024 is a guidance document developed for the local market as a result of a cooperation between the Jamaica Stock Exchange (“JSE”), the Ministry of Finance & Public Service and the Inter-American Investment Corporation (“IDB Invest”) with technical support provided by sustainable finance consulting firm, HPL.LLC (“HPL”). The purpose of the guide is to provide the Jamaican market with tools for the issuance of Green, Social, Sustainability, and Sustainability-Linked Bonds (“GSS+” or “thematic” bonds) and thus influence the advancement towards sustainable financing in the country.
The guide builds on the requirements for bond issuance regulation in Jamaica by providing additional information on what is needed for GSS+ bonds, clarifying the main components for issuing bonds in line with recognized market practices and providing recommendations on best practices in the market that have contributed to the transparency and integrity of the issuances.
