Regulatory Alerts2025-09-30
Proposed Sustainable and Sustainability Linked Debt Securities Regulatory Framework
The Central Bank of Bahrain proposes a regulatory framework for issuing and offering Sustainable and Sustainability-Linked Debt Securities, adding Sections OFS-1.15 and OFS-5.15 to its Offering of Securities Module. The rules require enhanced disclosure standards and independent advisor verification to prevent greenwashing while aligning capital market activities with sustainable development goals. Market participants must submit consultation feedback by 30 September 2025 to shape the final implementation of these issuance requirements.
Central Bank of Bahrain
مصرف البحرين المركزي
OG/240/2025
2nd September 2025
Chief Executive Officer
All Licensees,
All Listed Companies,
All Audit firms,
All Law firms,
All Capital Markets Service Providers,
Manama - Kingdom of Bahrain
Dear Sir/ Madam,
**Consultation: Proposed Sustainable and Sustainability Linked Debt Securities Regulatory Framework under the Offering of Securities Module**
As part of the Central Bank of Bahrain’s (“CBB”) objective to develop the financial sector, the CBB hereby proposes a regulatory framework for issuance and offering of Sustainable and Sustainability linked Debt Securities as set out in new Sections, OFS-1.15 and OFS-5.15 of the Offering of Securities (OFS) Module of CBB Rulebook Volume 6.
Also attached to this circular is a questionnaire (See Annexure) that licensees should complete for the CBB to get a better understanding of the impact on the licensee’s investment/operations.
The proposed additions to the Module shall be available on the CBB website (www.cbb.gov.bh) under the “Open Consultations” Section.
The CBB requests you to provide your response to the consultation questionnaire and any further comments on the proposed Module, including “nil comments” in an editable format to consultation@cbb.gov.bh by 30th September 2025.
Yours faithfully,
Khalid Humaidan
Governor
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هاتف: +973 1754 7000، فاكس: +973 1753 7799، ص.ب 27، المنامة، مملكة البحرين
T +973 1754 7500, +973 1754 7555, F +973 1753 7799, P.O. Box 27, Manama, Kingdom of Bahrain, www.cbb.gov.bh
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Central Bank of Bahrain
مصرف البحرين المركزي
**Annexure: Consultation questionnaire**
1. Do you agree with CBB’s approach to the proposed regulatory framework for issuance and offering of Sustainable and Sustainability linked Debt Securities?
2. Do you believe that the regulatory framework for issuance and offering of Sustainable and Sustainability linked Debt Securities would help prevent green washing?
3. Do you agree with the level of disclosure required in the offering document?
4. Do you agree with the approach taken regarding the requirement to appoint independent advisor for verification?
5. Will the proposed regulatory framework help promote sustainable goals and is it aligned with your strategy?
6. Do you believe there are opportunities in the market for such debt issuances?
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هاتف: +973 1754 7000، فاكس: +973 1753 7799، ص.ب 27، المنامة، مملكة البحرين
T +973 1754 7500, +973 1754 7555, F +973 1753 7799, P.O. Box 27, Manama, Kingdom of Bahrain, www.cbb.gov.bh
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