EGYPT - ICF 2022 & African Ministers Meeting

WORKSHOP 8: SOVEREIGN RATINGS, GREEN/SUSTAINABLE BONDS, AND THE LSF

Fair sovereign rating, pricing strategy, investor allocation, market liquidity, and ongoing information disclosure are critical factors when leveraging resources from the international capital markets at reasonable rates. This workshop aims to facilitate dialogue between countries and rating agencies, and help countries better understand the methodologies, requirements, and considerations (including ESG criteria) in a sovereign rating process. In addition, market overview and country experience will be shared for green and sustainable bond issuance. For secondary market liquidity, the Liquidity and Sustainability Facility provides a repo mechanism that countries can apply to lower the cost and incentivize green and sustainability-linked investments. ESG criteria can often place significant reporting burdens on developing countries seeking to use market-based opportunities to be able to raise finance for investment in climate resilience.