FMA wants feedback on green bonds
Liam Mason, FMA general counsel, executive director evaluation and oversight says the industry has said there is a need for a more efficient route to market for GSSS bonds.
The FMA says the exemption would operate in a way similar to the same class exclusion in the Financial Markets Conduct Act 2013 (FMC Act), that allows already-listed companies to raise further capital using simple, streamlined disclosure.
It is seeking feedback on whether to grant an exemption to allow issuers to offer bonds that have identical rights, privileges, limitations and conditions to existing quoted bonds, except for a different interest rate, redemption date and GSSS status, without having to prepare a product disclosure statement (PDS) as required under part 3 of the FMC Act.
This would be on the basis that the new GSSS bond is sufficiently similar to an existing quoted bond that information is already available to inform investors and allow the product to be effectively priced by the market.
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