Insights

In support of Malta’s and the European Union’s (the “EU”) commitments to the promotion of sustainable finance and investments, the Malta Stock Exchange (the “MSE”) announced that the Malta Financial Services Authority (the “MFSA”) has approved the Bye-Laws for the establishment of an MSE Green Market.

The Green Market will serve for the listing of Green Bonds on the local capital markets. Issuers seeking to raise finance for green projects must meet the MSE’s Green List criteria (based on the International Capital Markets Association’s Green Bond Principles). Issuers meeting these requirements will qualify for discounted listing fees.

Qualifying issuers would need to invest in projects that contribute towards one of the environmental objectives inter alia: Climate Change Mitigation, Climate Change Adaptation, Pollution Prevention, Sustainable Use of Water and Marine Resources.

This is an exciting and welcomed step by the MSE in its promotion of sustainable finance and investment through the legitimate integration of Environmental, Social and Governance considerations is financial instruments.