"Money bills" Extending the decision to exempt registration fees for green and sustainability-related bonds and instruments
Abu Dhabi, April 29 / WAM / The Securities and Commodities Authority decided today to extend the exemption from registration fees for green and sustainability-related bonds and sukuk.
The decision, issued by His Excellency Muhammad Ali Al-Sharafa Al-Hammadi, Chairman of the Board of Directors of the Securities and Commodities Authority, stated that the exemption from fees prescribed for registration with the Authority will be extended in accordance with the decision of the Chairman of the Board of Directors of the Authority issued previously, for registration applications submitted during the current year, without prejudice to the provisions of the decision. No. 5 of 2023 regarding the registration of securities for the purpose of listing.
This decision supports the Authority’s efforts to encourage companies to move towards issuing green and sustainability-related bonds and bonds to finance sustainable projects related to the environment and climate. It also encourages investors and companies to adopt environmentally friendly investment opportunities.
Last June, the Board of Directors of the Securities and Commodities Authority approved a proposal under which the Authority would exempt companies wishing to list their green or sustainability-related bonds or sukuks in a local market from registration fees for the year 2023.
The decision aims to highlight the actions undertaken by the state according to a clear agenda to achieve sustainable development goals on more than one level, especially with regard to sustainable economic growth.
It is noteworthy that the registration fee for bonds and instruments for the purpose of listing is determined in accordance with the decision of the Chairman of the Board of Directors of the Authority No. (32 / R.M.) of 2018 regarding technical services fees due at a rate of 0.01% of the issue value and a maximum of 30 thousand dirhams.
Last year, the Securities and Commodities Authority issued a decision regulating green bonds and sukuks linked to sustainability, which allowed public joint-stock companies to issue green bonds and sukuks, the entire subscription proceeds of which would be used to finance or refinance sustainable, environmentally friendly projects such as (renewable energy projects, energy efficiency projects, and pollution prevention projects). control, environmentally sustainable management projects for living natural resources and land use, terrestrial and aquatic biodiversity conservation projects, clean transportation projects, and sustainable water and wastewater management projects), as well as corporate issuance of sustainability-related bonds and instruments through which specific sustainability goals are achieved. The issuing company has within a pre-determined period of time to contribute to achieving key performance indicators, and carries structural and/or financial advantages and characteristics that are subject to change depending on the issuer’s achievement of sustainability goals.
- For more: DC & People website and for social networking, you can follow us on Facebook
- Source of information and images “poosh“
