LuxSE and BRVM Collaborate on Sustainable Finance

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by KnowESG

The Bourse Régionale des Valeurs Mobilières (BRVM) signed a Memorandum of Understanding (MoU) with the Luxembourg Stock Exchange (LuxSE) during an official visit to Luxembourg.

This memorandum of understanding, which predominantly focuses on sustainable finance, is the first official step in what is envisaged to be a long collaboration aimed at boosting sustainable finance in the WAEMU zone.

Edoh Kossi AMENOUNVE, Director General of the BRVM, said: 

"Sustainable finance represents a financing opportunity for emerging countries because they have the possibility of attracting a new type of investors, who otherwise would not have been interested in their bond issues. This is why I am delighted with the signing of this memorandum of understanding with the Luxembourg Stock Exchange for the development of sustainable finance within the West African Economic and Monetary Union."

The BRVM is one of the cornerstones of the West African Economic and Monetary Union, which aims for closer integration among Benin, Burkina Faso, Côte d'Ivoire, Guinea- Bissau, Mali, Niger, Senegal, and Togo. It is shared by these eight countries. The Luxembourg Stock Exchange (LuxSE) is a pioneer in sustainable finance and the major listing venue for international debt securities. The Luxembourg Green Exchange (LGX) now has over 1,400 sustainable bonds.

The two exchanges commit in this memorandum of understanding to investigate the formation of a bond market dedicated to green, social, sustainable, and sustainability-related bonds at the BRVM, as well as to explore the potential for dual listings. The two institutions are committed to collaborating on training programmes in sustainable finance within the framework of the BRVM Academy.

Julie Becker, CEO of LuxSE, said: 

"Strengthening cooperation with our African counterparts is a key priority for our Exchange this year. We are pleased to partner with the BRVM and work together to help the BRVM establish a sustainable bond market and make it easier for international investors to identify investment opportunities that fund sustainable development in South Africa. 'West. While Europe is at the helm of sustainable finance, Africa accounts for only a fraction of global green bond issuance. This needs to change as sustainable capital is needed to fund sustainable development in the region."

In 2019, the BRVM announced the establishment of the BRVM Academy, which will educate finance professionals and the general public of the West African Economic and Monetary Union on key capital market and stock exchange theories. 

Similarly, LuxSE launched the LGX Academy in May 2020 to help participants better grasp the principles of sustainable finance, as well as the rules and important actors impacting the market. Reflecting their strong intention to close the knowledge gap that is impeding the development of sustainable finance, the two institutions will now collaborate to produce sustainable finance training modules as part of the BRVM Academy.

Source: BRVM

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