SECP, InfraZamin promote green financing through debt markets

May 01, 2025 (MLN):The Securities and Exchange Commission of Pakistan (SECP) and InfraZamin, in collaboration with UK International Development and the Private Infrastructure Development Group (PIDG), hosted a seminar focused on "Green Financing via Debt Capital Markets."

The seminar explored how debt capital markets can serve as a powerful tool for financing environmentally sustainable projects, facilitating the transition to a low-carbon economy, and creating climate resilience.

Discussions centered on the role of credit enhancement as a means to de-risk bonds, making them an attractive investment avenue for long-term liquidity pools, such as asset managers and insurance companies.

The role of the SECP in facilitating innovation and providing pathways to encourage private sector participation in green financing was acknowledged, as per the press release.

The speakers highlighted the substantial societal benefits associated with green financing, underlining its potential to drive sustainable development and climate resilience.

They emphasized the vital roles that different stakeholders including governments, financial institutions, regulatory bodies, and development partners must play in fostering an enabling environment for the growth and issuance of green bonds.

A key focus of the discussion was the role of credit enhancement mechanisms in mitigating risks for investors, thereby making green investments more attractive and viable.

Representatives from PIDG, GuarantCo, and the British Council shared compelling success stories from emerging economies, illustrating how innovative credit enhancement tools have been instrumental in mobilizing large-scale financing for green infrastructure and environmentally sustainable projects.

These examples showcased how de-risking strategies can bridge investment gaps and accelerate the flow of capital toward climate-aligned initiatives.

The Chairman of the SECP and the Commissioner of the Specialized Companies Division reaffirmed the Commission's commitment to building a transparent and efficient capital market, streamlining the bond issuance process to reduce both time and cost.

He also urged the private sector to adopt enhanced disclosure standards for greater transparency and called for credit enhancements to boost investor confidence and broaden the investor base.

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