Dark Mode
Image
Saturday, 28 January 2023
Why Bahrain’s First-Ever ‘Green Sukuk’ is Getting a Splashy London Stock Exchange Listing

Why Bahrain’s First-Ever ‘Green Sukuk’ is Getting a Splashy London Stock Exchange Listing

2022-10-31

 

The world’s first green sukuk has been approved for issuance by the Bahrain Stock Exchange (BSE). The Green Sukuk, as it is known, is an instrument that can be used to raise capital on a green, sustainable and ethical basis. Investors will be able to buy the sukuk, which is listed on the Alternative Investment Market (AIM), which will help provide financing to companies that are creating a more environmentally-friendly society and reduce carbon emission.

Bahrain’s decision to list the sukuk is part of the tiny Gulf state’s plan to attract more green capital to its economy. The government is also working to attract more foreign investment in the oil and gas sector, which accounts for more than 80 percent of the country’s income.

Why issue a green sukuk?

As the world economy faces increased levels of demand for oil and gas, it has become more important to explore ways of financing sustainable and low-carbon growth. Many fossil fuel-based economies are also taking steps to encourage the development of renewable energy and improve energy efficiency.

To meet these objectives, many oil and gas-rich countries are exploring ways of financing low-carbon development and reducing carbon emissions through the issue of green bonds. These bonds can be used to finance a variety of projects, including renewable energy and energy efficiency projects. The proceeds from the sale of these bonds are generally earmarked to reduce carbon emissions.

How is a green sukuk different to conventional debt?

Conventional debt is typically issued by government entities or banks and is secured against the issuer’s assets. The proceeds from the sale of these bonds are typically used to repay debt or fund capital projects. The bonds are also typically listed on a government or government-backed bond exchange, such as the London Stock Exchange or the New York Stock Exchange.

Typically, a green sukuk will not be backed by a government or a bank. Instead, the issuer of the sukuk will pledge some of its own assets as collateral. The green sukuk will only be as good as the assets pledged as collateral. If the issuer breaches the terms of the contract, the sukuk holder may file a lawsuit against the issuer in a court of law.

The issuer of a green sukuk must meet certain criteria

The issuer of a green sukuk must meet certain criteria in order for it to be listed on the Bahrain Securities Exchange (BSE). This includes displaying the approved logo on the issuer’s website, business papers and the bond prospectus. The BSE also publishes a list of approved investment professionals who can assist with the sale of the sukuk.

A green sukuk can only be issued by an entity that is registered in Bahrain

The issuer of a green sukuk must be registered with the Central Bank of Bahrain and be incorporated in Bahrain. The issuer must also have a main office in Bahrain and be engaged in activities that are considered socially and environmentally responsible.

The BSE is the first exchange to list a green sukuk

The BSE is the first exchange to list a green sukuk. The BSE has approved two issuers that will issue the first two tranches of the Sukuk.

The Green Sukuk is expected to be listed on other exchanges

The BSE is in discussions with other exchanges to list the Green Sukuk. There is a high demand from investors for this type of investment product and it is likely that other exchanges will list it in the near future.

How much will the Green Sukuk cost to buy?

Investors will be able to buy the Green Sukuk for £100 ($166, €122) per £100 face value. The cost of the sukuk will be of significant interest to institutional investors who may be interested in purchasing large quantities.

Conclusion

The world’s first green sukuk has been approved for issuance by the Bahrain Stock Exchange (BSE). The Green Sukuk, as it is known, is an instrument that can be used to raise capital on a green, sustainable and ethical basis. Investors will be able to buy the sukuk, which is listed on the Alternative Investment Market (AIM), which will help provide financing to companies that are creating a more environmentally-friendly society and reduce carbon emission.

 
 
 

Bahrain’s decision to list the sukuk is part of the tiny Gulf state’s plan to attract more green capital to its economy. The government is also working to attract more foreign investment in the oil and gas sector, which accounts for more than 80 percent of the country’s income.

Why issue a green sukuk?

As the world economy faces increased levels of demand for oil and gas, it has become more important to explore ways of financing sustainable and low-carbon growth. Many fossil fuel-based economies are also taking steps to encourage the development of renewable energy and improve energy efficiency.

To meet these objectives, many oil and gas-rich countries are exploring ways of financing low-carbon development and reducing carbon emissions through the issue of green bonds. These bonds can be used to finance a variety of projects, including renewable energy and energy efficiency projects. The proceeds from the sale of these bonds are generally earmarked to reduce carbon emissions.

How is a green sukuk different to conventional debt?

Conventional debt is typically issued by government entities or banks and is secured against the issuer’s assets. The proceeds from the sale of these bonds are typically used to repay debt or fund capital projects. The bonds are also typically listed on a government or government-backed bond exchange, such as the London Stock Exchange or the New York Stock Exchange.

Typically, a green sukuk will not be backed by a government or a bank. Instead, the issuer of the sukuk will pledge some of its own assets as collateral. The green sukuk will only be as good as the assets pledged as collateral. If the issuer breaches the terms of the contract, the sukuk holder may file a lawsuit against the issuer in a court of law.

The issuer of a green sukuk must meet certain criteria

The issuer of a green sukuk must meet certain criteria in order for it to be listed on the Bahrain Securities Exchange (BSE). This includes displaying the approved logo on the issuer’s website, business papers and the bond prospectus. The BSE also publishes a list of approved investment professionals who can assist with the sale of the sukuk.

A green sukuk can only be issued by an entity that is registered in Bahrain

The issuer of a green sukuk must be registered with the Central Bank of Bahrain and be incorporated in Bahrain. The issuer must also have a main office in Bahrain and be engaged in activities that are considered socially and environmentally responsible.

The BSE is the first exchange to list a green sukuk

The BSE is the first exchange to list a green sukuk. The BSE has approved two issuers that will issue the first two tranches of the Sukuk.

The Green Sukuk is expected to be listed on other exchanges

The BSE is in discussions with other exchanges to list the Green Sukuk. There is a high demand from investors for this type of investment product and it is likely that other exchanges will list it in the near future.

How much will the Green Sukuk cost to buy?

Investors will be able to buy the Green Sukuk for £100 ($166, €122) per £100 face value. The cost of the sukuk will be of significant interest to institutional investors who may be interested in purchasing large quantities.

Conclusion

The world’s first green sukuk has been approved for issuance by the Bahrain Stock Exchange (BSE). The Green Sukuk, as it is known, is an instrument that can be used to raise capital on a green, sustainable and ethical basis. Investors will be able to buy the sukuk, which is listed on the Alternative Investment Market (AIM), which will help provide financing to companies that are creating a more environmentally-friendly society and reduce carbon emission.

Bahrain’s decision to list the sukuk is part of the tiny Gulf state’s plan to attract more green capital to its economy

Comment / Reply From