We are pleased to announce the latest post on the SUARA SEACEN Blog by Srichander Ramaswamy, Director of the FSSP Pillar and Adryan Rosli, Research Associate.
Should Green Bonds be Structured to Safeguard Assets they Back in Bankruptcy?
“When a brown conglomerate defaults, should green bondholders get first claim on the green assets they helped finance — or be treated like any other unsecured creditor? Across the ASEAN-5, bankruptcy laws make no distinction between green-labelled and conventional debt, meaning that even ring-fenced proceeds can end up in the general insolvency pool unless protected by contractual or structural safeguards. As investments in green technology gathers momentum, it raises a critical policy question: do we need new legal or market structures to ensure that green investments remain bankruptcy-remote and true to their environmental purpose?”
Click here to read.
Copyright © 2018 | All Rights Reserved - The SEACEN Centre Web Design by Justsimple