The Mozambique Stock Exchange (BVM) intends to issue its first Green Bonds as soon as the legislation for this purpose is approved, later this year.

In a report published in the newspaper Económico, the chairman of BVM's board of directors said that the inclusion of Sustainable Finance products in the securities portfolio "will strengthen the improvement of Mozambique's position in international Capital Markets indices, such as the ABSA Finantial Markets Index (AFMI)", among others.

"I believe that once the normative instruments are approved in 2024, we will have the first Sustainable Financing issue, which will certainly be a Green Bond issue, because that is what we have been working on with one of the national financial institutions that showed an early interest in its materialization in Mozambique," said Salim Valá.

According to him, the lack of this type of product has hurt Mozambique's position in these indices. Even so, he recognizes that the institution has been following the possibilities of issuing Sustainable Finance bonds very closely, including the role taken on by various international institutions to support the transition of African countries to green growth.

"The proceeds of these sustainable bond issues are intended to support the transition to a green economy in Africa, and will support the efforts of these entities in the areas of climate change mitigation and adaptation, the creation of sustainable infrastructure, the efficient and sustainable use of natural resources, forest and biodiversity conservation projects, among others," Valá stressed,

The source explained that "since 2022, BVM has been preparing proposals for a founding document and a regulatory instrument for the launch of sustainable financing instruments, which include Green Bonds [to finance investments in the green economy] and Blue Bonds [blue economy], but also other types of special-purpose bonds, such as Social Responsibility Bonds".