KUALA LUMPUR (Nov 8): The ASEAN Capital Markets Forum (ACMF) today launched the ASEAN Green Bond Standards (AGBS), which are intended to provide additional guidance on the application of the Green Bond Principles (GBP) as well as to enhance transparency, consistency and uniformity of ASEAN Green Bonds.
 
In a statement, ACMF said the AGBS was developed based on International Capital Market Association (ICMA)’s GBP and tailored to meet the needs and commitment of ASEAN.
 
The AGBS label is to be used only for issuers and projects in the region and specifically excludes fossil fuel-related projects, said ACMF, a high-level grouping of capital market regulators from all 10 ASEAN jurisdictions, namely Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
 
ACMF noted that a recent joint study by the World Bank and the ACMF confirmed the huge potential for green financing in ASEAN, with global green bond issuances projected to increase to US$1 trillion by 2020.
 
“ASEAN must grow in a responsible and sustainable manner. Growth cannot come at the expense of our future generations,” said ACMF Chair Ranjit Ajit Singh, adding that the ASEAN Green Bond Standards will help in the allocation of resources towards climate friendly investments.
 
“I am also pleased to announce that the SEC Philippines has committed to signing on to the ASEAN MOU on Collective Investment Scheme (CIS), joining Singapore, Malaysia and Thailand,” he said.
 
“At the same time, at its 27th ACMF Meeting held yesterday, the ACMF also agreed to facilitate greater mobility of capital market professionals. This initiative will culminate in a pathway that allows professionals licensed by an ACMF member to provide designated services in another member’s jurisdiction without having to meet additional requirements,” Ranjit added.
 
“We welcome the alignment of AGBS with Green Bond Principles, representing voluntary international guidelines that recommend transparency and disclosure, and promoting integrity in the green bond market,” said ICMA Chief executive Martin Scheck.
 
Meanwhile, ACMF said Permodalan Nasional Bhd (PNB), via its wholly-owned subsidiary PNB Merdeka Ventures Sdn Bhd, is the first issuer in the region to have pledged to adopt the AGBS for its sukuk issuance to finance the construction of the Warisan Merdeka Tower, which will be the third tallest building in the world upon completion.
 
The launch of the AGBS was held in conjunction with the inaugural ASEAN Capital Market Conference, themed “Strengthening ASEAN Capital Market Connectivity” held on the same day, which saw the participation of over 300 people from the region, representing issuers, investors, intermediaries, regulators and experts from institutions like the Asian Development Bank, the Asian Infrastructure Investment Bank, the ICMA and the World Bank.
 
The panel sessions at the conference discussed topics central to growth and opportunities in the region, including infrastructure and green financing, corporate governance and changing market dynamics in the age of digitisation, said ACMF.