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CS Professional · IFSCA - Regulations, Listing and Compliances · Listing and Issuance of Securities

Saffron Housing Finance proposes to list green bonds at an IFSC exchange, with proceeds earmarked for solar rooftop projects. What additional element would the issuer be expected to address beyond ordinary debt disclosures?

Saffron must give additional disclosure on how proceeds will be used for eligible green projects, how projects are evaluated, and ongoing reporting on the green objective. Green labelling adds obligations; it does not remove continuing disclosure or require a sovereign guarantee.

  1. AConversion of the bonds into equity at the issuer's option
  2. BDisclosure on use of proceeds, project evaluation and ongoing reporting on the green or sustainable objectiveCorrect
  3. CExemption from all continuing disclosure obligations
  4. DA guarantee from the Government of India

Explanation

Labelled bonds such as green bonds require disclosures on the eligible use of proceeds, the selection process and periodic reporting. They are not exempt from continuing disclosure, and no government guarantee or conversion feature is needed.

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