AKIPRESS.COM - The Financial Regulatory Commission registered the first green bond in Mongolia. This is the first "Green Bond" assessed by the international organization Sustainable Fitch as meeting the principles of green bonds, according to the Commission.

FRC approved a new procedure for issuing green bonds in 2021, which play a significant role in the development of green financing in the country. FRC signed a Memorandum of Understanding with the International Finance Corporation (IFC). The IFC is a member organization of the World Bank Group to solve the environmental problems facing Mongolia by increasing green financing, Montsame reported.

IFC supported the development of procedures to regulate relations regarding issuance of green bonds and its registration in accordance with internationally recognized principles. The FRC cooperated in including the regulations in the newly approved "Procedure on Registration of Company's Debt Instruments." This document will be a step to support the development of the domestic "Green Bond" market for financing environmentally friendly and green projects in Mongolia.

Green bonds are widely used at the international level to attract investments required to reduce the negative effects of climate change, increase energy efficiency, and solve waste problems.

Khan Bank plans to issue the green bond without collateral in accordance with its credit rating calculated by an international credit rating agency and to implement a major mid-term goal of intensively increasing its green financing portfolio to finance environmentally friendly activities.