Green Bonds

The Jamaica Stock Exchange affirms its commitment as a Sustainable Stock Exchange through innovative green investment product offerings.

What are Green Bonds?

Green bonds are debt instruments which are issued for the exclusive purpose of providing funding to support environmentally friendly, climate-related projects. Such projects are commonly focused on:

  • Renewable energy and energy efficiency
  • Waste management
  • Efficient transport systems
  • Sustainable housing
  • Green/sustainable infrastructure, amongst others.

With green bonds, there is also the requirement of transparency, as reports on the use and management of proceeds, in  keeping with the stated objectives, must be made available to investors and the public on a regular basis.

Beneficiaries of a Green Bond Listing

The Government and Regulators
Green bonds can facilitate the establishment of public-private partnerships, which can in turn encourage green investment and lead to the adoption of new technologies in green financing.

Green bonds allow brokers the opportunity to diversify their client base.

Green bonds have the potential to attract strong investor demand, which can then lead to high oversubscription and pricing benefits.

Green bonds can provide comparable financial returns with the addition of environmental and/or social benefits.

The Environment
Green bonds can provide long term, sustainable sources of funding to support preservation and restoration of the environment.