Aggregated News From Investment Management Regulators

In a step to promote green bonds issuance: FRA exempts issuers of green bonds from 50% of services and examination fees – Tuesday 5 /11/2019


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Dr. Mohammed Omran, FRA’s Chairman announces the approval of the Board of Directors at its last meeting to exempt issuers of green bonds from 50% of services and examination fees. In this respect, the fees will be half per thousand of issuance value at IPO and a quarter  per thousand of issuance value  at  private subscription, instead of one per thousand of issuance value at  IPO, and half per thousand of issuance value at private subscription. This step will be a move to stimulate and encourage institutions and companies to issue Green bonds.

FRA’s Chairman says that this step comes within the framework of completing the system of green bonds issuance in Egypt and encouraging and integrating policies of green and sustainable economy within the non-banking financial sector. He added that this was preceded by the end of August by FRA’s BOD decision that defined the list of independent international environmental observers, in which parties wishing to issue green bonds shall choose from in order to activate the issuance of green bonds within the Egyptian economy.

FRA’s Chairman explains that green bonds are one of the financing instruments available to governments and companies that use their proceeds in environmentally friendly projects. The issuer is committed to meeting bonds value and its due yield.   Green bonds are financing instruments that enforce respect of environmental standards. It aims at using clean energies and mitigating factors that contribute to global warming. In addition, green bonds target new and renewable energy projects, Climate change adaptation projects, energy efficiency projects and pollution prevention and control projects, green building projects and clean transport projects such as transportation and electricity.

It is worth mentioning that FRA’s BOD – last October – approved proposals by the Capital Market Advisory Committee to reduce services charges on trading operations charged by all market institutions. The proposal included reducing services charges on trading operations by 20% to be 5 per 100,000 instead of 6.25 per 100,000 and a 20% reduction in clearing and settlement operations to be 10 per 100,000 instead of 12.5 per 100,000 and also by a 17% reduction to the stock market to be 10 per 100,000 instead of 12 per 100,000.  In addition, the Committee also recommended reducing the fees of investor protection fund by 50% to be 5 per 100,000 instead of 1 per ten thousand. Also, reducing services charges on trading in listed shares by 50%.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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