Consultation: Proposed exemption for certain green, social, sustainability and sustainability-linked bonds

We are considering a class exemption to provide relief from disclosure requirements for certain green, social, sustainable, and sustainability-linked (GSSS) bonds on a similar basis to the same class exclusion in clause 19 of Schedule 1 of the Financial Markets Conduct Act 2013. 

If granted, the exemption would allow issuers to make offers of bonds that have identical rights, privileges, limitations and conditions to existing quoted bonds, except for a different interest rate, redemption date, and GSSS status, without the usual disclosure requirements in Part 3 of the FMC Act that require preparing a Product Disclosure Statement.  

The exemption would be subject to conditions, including that the issuer must make available to investors information about the GSSS features of the bond. 

This may help to reduce regulatory burden on issuers and increase opportunities for New Zealanders to invest in products that align with their values and/or deliver non-financial benefits.  

We welcome your feedback on the exemption proposal in response to the specific questions in this paper, as well as any other general comments.  

Download the Consultation paper: Proposed exemption for certain green, social, sustainability and sustainability-linked bonds