On May 11, 2020, a new version of the Bank of Russia Regulation on Securities Issue Standards No. 706-p dated December 19, 2019 entered into force, which significantly simplifies the procedure for issuing securities both at the stage of preparing documents and at the stage of their submission for registration to the Bank of Russia and obtaining a regulatory decision. In addition, the document establishes the features of bond issuance with the targeted use of funds received from their placement, including green bond issues, social and infrastructure bonds.
Green, social and infrastructural bonds in a document are understood as bonds, funds from the placement of which will be directed to:
- Preservation and protection of the environment, a positive impact on the environment and in accordance with internationally recognized principles and standards in the field of ecology and (or) green financing.
- development of public life and in accordance with internationally recognized principles and standards in the field of social financing and (or) sustainable development.
- goals associated with financing a project for the creation and (or) reconstruction of property that is the subject of a concession agreement, an agreement on public-private partnership or an agreement on municipal-private partnership.
In addition, the decision to issue such bonds should contain a condition on the use of all cash received from the placement of bonds; a description of the project for the financing and (or) refinancing of which the funds received from the placement of bonds will be used, indicating the qualitative and quantitative indicators; a list of internal documents (policies) of the issuer and its procedures in the field of selection and evaluation of projects for green and social bonds, as well as information about the legal entity (legal entities) that prepared the conclusion (document) on the project's compliance, for financing and (or) refinancing which will use the funds received from the placement of bonds, internationally recognized principles and standards in the field of ecology and (or) “green” financing, or internationally recognized principles and standards in the field of social financing and (or) sustainable development, etc.
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