The Jamaica Stock Exchange (JSE) is set to become the first Caribbean marketplace to facilitate the issuance of green, blue, and other sustainable coloured bonds. 

This disclosure was made by Finance Minister Dr Nigel Clarke, during the JSE’s 19th Regional Investment and Capital Markets Conference at the Jamaica Pegasus Hotel in New Kingston.

“Blue is maritime, green is for [climate] and then there are other colours as well. This will be a very important step because investors who invest in these kinds of instruments want to know that the criteria for calling something green or blue is very firmly established. Later this year, the Jamaica Stock Exchange… will be in a position to be the first stock exchange in the region to support the issuance of green, blue and other sustainable bonds in a rigid framework where everybody has confidence about what it means,” he said.

He further noted that the JSE will be in that position by the end of June where green bonds can be a reality in Jamaica, indicated that the entity “is being supported by the Inter-American Development Bank… to develop the infrastructure… for the issuance of green financing facility.”

Clarke said the Government is working on creating a financial facility as part of efforts to incentivise investments in Jamaica for sustainable projects.

“What we’re working on is to build a facility here in Jamaica where the Government of Jamaica comes in at the first… layer to inspire others to come in. And we’re working to have multilaterals at the green financing facility and others, as well as bilaterals, provide funding in a way that the Government can leverage its contribution several fold. Those funds will be available on concessional terms for investing in projects that have a green or blue lens, or feature to them in order to incentivise investment in Jamaica that is sustainable,” he explained.. 

The finance minister assured that more details will be provided on the establishment of the project preparation facility.

“Having a dedicated facility where funds are available for project preparation is critically important, and we’re working with the same group of partners. The project preparation facility was already launched and we’re working to capitalise it. I’m hoping later this year to be able to speak in more concrete terms about the kind of capitalisation that we’re aiming for,” Clarke said.