DFSA to Waive Regulatory Fees for Sustainability-Linked Debt Security Listings

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Judith Mariya

Published on December 5, 2023, 08:42:18


Thenbsp Dubai Financial Services Authority DFSA financial regulatory body

The  Dubai Financial Services Authority (DFSA), the financial regulatory body overseeing the Dubai International Financial Centre (DIFC), announced the complete waiver of regulatory fees for companies seeking to list sustainability-linked debt issues in 2024 under its jurisdiction. 

This fee exemption comes into immediate effect and aligns with DFSA's efforts to expedite the expansion of sustainable capital markets, coinciding with the COP28 initiatives. Notably, the DFSA introduced initial guidelines on green bonds' best practices back in 2018.

The Chief Executive of the DFSA, Ian Johnston, announcedat COP 28 reaffirmed the DFSA's steadfast dedication to expediting the development of sustainable capital markets within the DIFC. This commitment has been ongoing since the issuance of its initial guidelines on optimal practices for the listing of green bonds and sukuk back in 2018.

With over 60% of US-denominated ESG sukuk and nearly half of all-currency ESG sukuk, Nasdaq Dubai, the DIFC's prominent exchange, has solidified its position as the globe's primary market for ESG-related sukuk.

This exemption encompasses all ESG-linked bonds and sukuks categorized as green, social, sustainable, sustainability-linked, climate, climate adaptation, climate transition, or fitting similar descriptions.

The waiver extends to 'new and recurring issuers' seeking appropriate approvals from the DFSA and is immediately effective, encompassing applications received until December 31, 2022.

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