Connect with us

Hi, what are you looking for?


SEC readies ‘blue’ bonds framework


THE Securities and Exchange Commission (SEC) is set to release a “blue” bond framework that could drive funds to support the sustainability of water resources, a commissioner said.

“It’s similar to the green bond framework but it’s more blue-based, meaning more water [and] water resources. That’s something coming up soon,” SEC Commissioner Kelvin Lester K. Lee told BusinessWorld on the sidelines of a press briefing on Friday.

Mr. Lee said the blue bond framework comes as the commission continues to move for wider adoption of sustainability standards.

He said the SEC aims to release the framework by the second quarter of the year. The commission previously set guidelines for the issuance of green bonds, which allowed companies to raise funds for climate and environment projects.

The proposed framework follows the securities regulator’s release of a draft circular adopting the Association  of Southeast Asian Nations (ASEAN) Sustainable and Responsible Fund Standards (SRFS), which seeks to align with ASEAN member states in establishing and promoting sustainable and responsible investment funds.

“The point is, in this day and age, sustainability [and] sustainable finances are important already. We want to drive money and flows of funds towards green investments to support the whole net-zero issue,” Mr. Lee said.

The ASEAN SRFS applies to investment companies including the sub-funds of umbrella funds and companies seeking to offer investments locally or across borders in other ASEAN member states.

According to the draft, the commission requires investment companies to be registered under the Investment Company Act and the Securities Regulation Code, and comply with rules relating to sustainable and responsible investment (SRI) funds and ASEAN SRFS.

Additionally, the required payment is P10,000 for local companies and P80,000 for foreign companies, plus 1% of the said fee as a legal research fee.

The SEC’s Memorandum Circular No. 11, Series of 2022, or the Rules on Sustainable and Responsible Investment Funds, provides guidelines for investment companies that qualify as SRIs.

Foreign companies are also required to present proof of their qualifications as an ASEAN SRF. They also need to disclose the percentage of net asset value (NAV) that would be devoted to non-environmental, social, and governance matters.

Companies are also required to submit their strategies and objectives for attaining sustainable investments.

“The ASEAN SRF should primarily invest in securities which are in accordance with its sustainable investment objectives and strategies,  with a minimum asset allocation of at least two-thirds of its NAV, at all times,” the SEC said.

A violation of the rules translates to a penalty of between P20,000 and P100,000, depending on the provisions violated. A violator could incur a fine of P400 to P1,200 per day for continued violations.

According to Mr. Lee, the draft circular was released for public dissemination and is set for release in two to three weeks. — Adrian H. Halili

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Source: The world’s biggest crypto exchange Binance and its CEO and founder Changpeng Zhao were sued by the US Commodity Futures Trading Commission (CFTC) on Monday for operating what...


REUTERS BRUSSELS — European Union (EU) countries’ energy ministers are set to give final approval on Tuesday to the bloc’s law to end sales...


NEWLYWEDS pose for a photographer in front of overflowing garbage bins in a street near the Eiffel Tower as garbage has not been collected...


A WOMAN walks on the ice to a measuring point on the Pers Glacier near the Alpine resort of Pontresina, Switzerland, July 21, 2022....


RAWFILM-UNSPLASH BERLIN  — Global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris...


FREEPIK THE UNPRECEDENTED fiscal firepower used to protect the vulnerable from the harsh socio-economic impact of the COVID-19 pandemic and the resulting economic contraction...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.