B Mirror Report: The United Nations Development Programme (UNDP) and the Bangladesh Securities and Exchange Commission (BSEC) today signed a Memorandum of Understanding (MoU) aimed at strengthening Bangladesh’s capital market to attract long-term financing for climate-resilient and socially responsible investments.

The MoU was signed at the BSEC Bhaban in Dhaka, marking a major step toward mobilising both domestic and international capital for sustainable development initiatives.

Under the agreement, UNDP will provide technical support to BSEC in developing essential market infrastructure, including a Sustainable Finance Taxonomy, an Impact Measurement and Monitoring Framework (IMMF), and a Third-Party Verification Mechanism. These initiatives are expected to enhance transparency, comparability, and credibility in thematic bond issuances, addressing key concerns of global investors, according to a press release.

A key focus of the partnership is aligning Bangladesh’s thematic bond market with international standards, particularly those promoted through the EU-backed Global Green Bond Initiative (GGBI), supported by the Green Climate Fund.

Speaking at the signing ceremony, UNDP Bangladesh Resident Representative Stefan Liller said Bangladesh’s capital market holds significant potential to mobilise long-term funding for environmental and social projects. He noted that as the country transitions beyond LDC status and confronts increasing climate challenges, thematic bonds could play a vital role in attracting essential investment.

BSEC Chairman Khondoker Rashed Maqsood said the regulator remains committed to modernising the market framework by improving governance, strengthening transparency, and building investor confidence. He added that continued collaboration with UNDP and other stakeholders would help create a strong and predictable regulatory environment.

UNDP Programme Specialist Maliha Muzammil highlighted the organisation’s global experience in supporting sustainable finance markets, noting that the partnership would focus on enhancing regulatory systems, strengthening issuer capacity, and ensuring effective impact measurement to draw private capital aligned with national development and climate goals.

The event was attended by BSEC Commissioners Farzana Lalarukh and Md Ali Akbar, along with UNDP Bangladesh Country Economic Advisor Owais Parray. Senior officials from both organisations were also present, stressing the importance of issuer preparedness and credible impact reporting to develop a strong pipeline of quality thematic bonds.