5 days ago
Saudi Arabia issues new guidelines for GSS debt issuance
Saudi Arabia's Capital Market Authority (CMA) has set new regulatory guidelines for issuing green, social, sustainability, and sustainability-linked (GSS) debt instruments.
The framework for sustainable debt comes into effect from Tuesday and aims to promote local issuances and deepen the domestic fixed-income market.
Under the guidelines, GSS bonds must allocate proceeds exclusively to projects with positive environmental or social outcomes. By contrast, sustainability-linked bonds can be used for general corporate purposes, with classification tied to performance targets rather than use of proceeds.
According to the market regulator, global sustainability-linked assets reached $3.52 trillion by the end of 2023, surging 92.7% from 2020. Green bond issuance alone surpassed $580 billion in 2023.
The number of Saudi-listed firms disclosing sustainability practices rose to 94 in 2024, up from 81 in 2023.
Among the top 100 listed companies, sustainability disclosure increased to 65% in 2024, up from 58% the previous year, indicating a stronger commitment to transparency and ESG principles, the CMA said.
