By Nelson Ayivor
The Securities and Exchange Commission (SEC) has allayed investor concerns about Ghana’s emerging green bonds market, assuring that forthcoming issuances—particularly by corporate entities—will not mirror the losses experienced under the Domestic Debt Exchange Programme (DDEP).
Speaking to newsmen on the sidelines of the Ghana Green Bonds Market Development Programme in Accra, the Director-General of SEC, Dr. James Klutse Avedzi, said the structure and purpose of the new bond framework are fundamentally different from government-issued debt instruments.
“Well, the DDEP actually was the bond issue by the government,” he said. “In the past, when we were all in secondary school, we were taught that bills, bonds, security with the government are free. But the DDEP taught all of us– that it is not that.”
Dr. Avedzi explained that the green bonds currently under development are designed to support the real sector rather than government financing.
“This one is basically for the real sector, the corporate body, not for government,” he noted.
He added that the SEC would apply strict regulatory oversight to safeguard investors and build confidence in the market.
“We will do our work to ensure that the investor’s interest is protected, so that when that bond is issued, the bond will trade well on the Ghana Stock Exchange,” he said, adding that the goal is for investors to “make your capital gain” over time.
Touching on government borrowing, Dr. Avedzi confirmed that authorities have announced plans to issue more than GHS10 billion in infrastructure bonds, but said whether such instruments would qualify as green bonds would depend on the disclosures made.
“It depends on what you put in the prospectus. If it falls under the green bond, so be it. But for now, I don’t have that indication.”
He reaffirmed the SEC’s core mandate, stressing: “That is why the SEC is there—to protect the interests of the investor.”