NAIROBI ISSUES LISTING RULES FOR GREEN INSTRUMENTS

The Nairobi Securities Exchange has issued draft additions to its listing rules and regulations aimed at providing expressly for the listing of environment friendly instruments aka Green bonds.

According to the additional draft, the very first requirement is that an independent verifier must be appointed by the issuer for the issue.

Such a verifier must be aligned with International Capital Markets Association guidelines for external reviewers or be accredited under climate bonds standards and certification scheme.

It will be the duty of the verifier to confirm the green status of the instrument as defined by international green standards and Kenya's national policy on climate change.

Green instruments are defined by the draft as instruments intended to raise funds to finance or refinance new or existing green projects that generate climate or other environmental benefits, societal and sustainable development benefits that conform to green standards and guidelines.

The memorandum to be submitted to Kenya's Capital Market Authority and The Exchange simultaneously must include statement on environmental objectives; systems, policies and processes for management and allocation of the fund and a preissuance report by the verifier on the proposal.

The Exchange says that approval as green funds listing will depend more or less on the verifier report and within one year after listing the verifier must also issue a post issuance report confirming compliance with listing guidelines and green standards.

The draft also positions  Green Listing as a third sub segment of the Fixed income Securities market which until now was divided only into restricted and unrestricted fixed income segments.

Meanwhile, basic guidelines for issuing green instruments are the same as for others except Equity Traded Funds (ETF).

They are to be offered to the public initially for not more than 10 days; allotted not more than 7 days after offer closure; credited to benefitting holders within 5 days of allotment and refund of unsuccessful monies to be refunded within 3 days after allotment.

Finally, once credited to holders accounts, trading on the instruments start on the same day.

Comments

Post a Comment

Popular posts from this blog

DEC 20, 2018: UP, DOWN? CHECK ! AT NIGERIAN STOCK EXCHANGE

With one day more to end of the trading week, the All Share Index at the Nigerian Stock Exchange on Thursday confirmed a new up today, down tomorrow trend. The ASI closed at 30,802.90, up 0.32% after Wednesday's 0.35% decrease. Earlier, on December 13, the same trend was punctuated when the ASI closed 0.24% down instead of up. Since the trend resumed and got confirmed on Thursday as it rose by 0.32% on the back of 17 gains and 22 price drops. Seplat Petroleum jumped by N37.8 or 6.81% per share to lead the gainers as found and closed at N593 per share compared to N555.2 previously. It however recorded only 6 deals for 0.146m shares worth N87.106m. Also very much part of the critical pressure on ASI upwards, was N5 of 2.15% per share gain by Dangote Cement while witnessing 98 deals for 2.042m shares valued at N380.390m The rest gains were below N1 per share in contrast to price drops where 3 were above this borderline. Nestle Nigeria set the pace with N10 or 0.68% drop again, as it s...
Read more

UNITY BANK: WHEN SMALL IS BEAUTIFUL.

If there any time in Nigerian finance, it pays to be relatively small, the time is now and Unity Bank PLC is one of the banks that prove this in turbulent 2016. For Unity Bank the knocks of different policy somersault  since 2015 has been taking its pound of flesh but being rather small comparatively, one good news was enough to keep hope alive. So,  in the first half to June, gross earnings decreased significantly and many costs grudgingly followed from a distance but Unity Bank PLC still ended with profit, not loss. Gross earnings for the period had dropped by 35.1% to N21775.8m as interest income dived by 42.3% to N13477.4m; and fee and commission slumped by 82.7% to N804.2m. Stoking the fire some more was 32.7% drop in interest expense, well behind interest income decrease; 95.5% dive in paper income due to forex revaluation and less than proportionate decreases of 2.18% to N6942.2m and 24.4% to N5169.6m in personnel and other operating costs respectively. This recipe for...
Read more

ILLEGAL CAPITAL MARKET OPERATOR CONVICTED

Faraway from Lagos, Nigeria's commercial capital, the Federal High court Kaduna division, says Securities And Exchange Commission, in a landmark judgement on October 26 2016 convicted an illegal capital market operator to five years imprisonment. According to the SEC in a post on its website late last week, convicted was one Moses Samanja the managing director of an illegal and unregistered capital market operator, Marian Moses Ventures Ltd. He and the company were found guilty of soliciting and collecting deposits from the public with promises of "unrealistic return" on investment without SEC registration or license issued by the Central Bank of Nigeria. The court also directed the Corporate Affairs Commission to wind up the company and any funds in its accounts be used to restitute its clients. "Consequent upon the above" declared SEC, "this is to advise the investing public to always demand for SEC registration or CBN license before making deposit or sub...
Read more