The Ministry of Environment and the Superintendency of the Securities Market presented Green Taxonomy, the readiness of the country to continue to issue green, social and sustainable bonds for financial institutions now in the Micro, Small and Medium Enterprises (MSME) sector in the Dominican Republic. The financial instrument is intended to facilitate identifying opportunities for strategic investment that are aligned with the country’s environmental goals.
The effort focuses on fostering sustainable finance taxonomy, a classification system that defines economic activities that are considered environmentally sustainable. The launch event on 4 June 2024 was headed by Superintendent of the Securities Market Ernesto Bournigal Read and Environment Minister Miguel Ceara Hatton.
The taxonomy is established by two resolutions: R-NE-SIMV-2024-04-MV of the Superintendency of the Securities Market, and 0017/2024 of the Ministry of Environment, signed by Bournigal Read and Ceara Hatton.
The event was attended by Clara Fernández Martin, counselor of the Economic and Commercial Office of the Spanish Embassy in Santo Domingo, and Julio Lozano, director of Economy and Social Banking of the Association of Multiple Banks (ABA), who highlighted the importance of this milestone in the context of environmental sustainability and economic development of the country.
A first green bond issuance was carried out in 2022 by EGE Haina, a power company that placed green bonds for US$20 million to promote wind power generation.
Progress is made by the Dominican Republic’s Superintendency of the Securities Market in the development of the Green Taxonomy together with the Ministry of the Environment and the International Finance Corporation (IFC). The second green bond issue of the Dominican Republic has been approved to Banco Popular Dominicano, S.A. – Banco Múltiple, for an amount of RD$2.5 billion. The announcement on 4 June seeks to guide medium, small and micro businesses to use the innovative financial instrument. The Green, Social and Sustainable Bond market is expanding with Latin America and the Caribbean issuing more than 5% of the world total.
Read more:
Z101 Digital
Superintendence of Securities
Green Finance
Business Opportunities and green bonds
Interenergy
Latin Finance
6 June 2024