Mozambique: State to issue green, blue and social bonds

The Mozambican government now plans to issue green, blue and social bonds for sustainable projects related to the sea and environment, following a revision of the legal framework for Treasury bonds (OT), to which Lusa had access today. The new legislation, dated 1 December – updating the 2013 framework for medium- and long-term Treasury bond issues – provides for “special issuance modalities” of public savings bonds specifically aimed at citizens residing in the national territory and nationals living abroad.

An article on sustainable bonds states that the Ministry of Finance “may issue Treasury bonds with an environmental, social or sustainability objective,” including ‘green bonds’, ‘blue bonds’, ‘social bonds’, ‘carbon credit bonds’ and “other inclusive sustainable bonds.” Another article adds that “modalities of Treasury bonds may be issued for specific themes, namely projects, among others, that ensure the defence of the interests of the State and public debt.” The new legislation, approved by decree of the Council of Ministers, establishes the legal framework applicable to the issuance, placement, subscription, registration, settlement, custody, trading and redemption of Treasury bonds issued by the State, “as instruments of public medium- and long-term financing,” with issuances carried out through the stock exchange. The legislation now in force defines ‘blue bonds’ as debt securities used to finance projects related to the preservation and sustainable use of oceans and marine resources, while ‘social bonds’ refer to debt securities used “exclusively to finance projects that generate positive and measurable social benefits.” ‘Sustainable bonds’ combine “environmental and social objectives in a single financing instrument,” and ‘green bonds’ are intended exclusively to finance projects with clear environmental benefits.