Director-General of the Lao Securities Commission Office, Phengsy Phengmuong (second left) and Rowan Fraser exchanging documents after signing the Memorandum of Understanding to boost sustainable investment through the “Accelerating Corporate Thematic Bond Issuance in Laos” project. - Photo: Vientiane Times/ANN
VIENTIANE: The Lao Securities Commission Office (LSCO) and the Global Green Growth Institute (GGGI) on Thursday (Oct 10) signed a Memorandum of Understanding to boost sustainable investment through the “Accelerating Corporate Thematic Bond Issuance in the Lao PDR” project.
This collaboration, backed by the Government of the Grand Duchy of Luxembourg’s Global Trust Fund on Sustainable Finance Instruments, aims to bolster green financing by facilitating the issuance of thematic corporate bonds, particularly green bonds.
The project is pivotal in advancing Laos’ commitment to achieving its Nationally Determined Contribution under the Paris Agreement.
Through this partnership, the LSCO and GGGI will support interested Lao corporations to undertake preparatory technical activities for an initial corporate green bond issuance, in alignment with the Lao government’s broader drive towards establishing a robust green financing system within the country.
Also, it aims to unlock the flow of private capital towards green and climate projects.
Acting Governor of the Bank of the Lao PDR, Vathana Dalaloy, expressed confidence in the initiative.
“Support for enhancing sustainable finance and thematic bond issuance has always been a key priority of the Lao Securities Commission Office. We are thrilled to collaborate with the Government of the Grand Duchy of Luxembourg and the Global Green Growth Institute on this project, which will activate the thematic bond issuance ecosystem,” she said.
Deputy Prime Minister, Minister for Foreign Affairs and Foreign Trade, and Minister for Development Cooperation and Humanitarian Affairs of Luxembourg, Xavier Bettel, highlighted the longstanding cooperation between Laos and Luxembourg.
“As a leading global hub for sustainable finance, Luxembourg recognises the vital role of green financial instruments in channeling investment towards initiatives that support the global climate agenda,” he said.
“Laos has been a valued partner of Luxembourg’s Development Cooperation for many years, and I am pleased that, by working together with the GGGI, we are able to expand and deepen our collaboration in the area of green bonds, reflecting our shared commitment to a more sustainable future.”
Country Representative of GGGI Laos, Rowan Fraser, highlighted the broader impact of the initiative.
“Laos’ climate targets cannot be achieved with public financing alone - private capital is an essential component. GGGI is pleased to assist the government’s efforts to crowd in and channel private funds towards the green transition.”
“For several years, the Global Green Growth Institute has been working in Asia and Latin America to support thematic bond issuances and we are pleased to bring that support to Laos also,” Fraser said. - Vientiane Times/ANN
