Agricultural notes, securitization, and green bonds: NSSMC and IFC discussed new financial instruments for business

The Chairman of the National Securities and Stock Market Commission, Oleksii Semeniuk, and NSSMC Commissioner Maksym Libanov held a meeting with Kyrylo Mukhomedzyanov, Head of the IFC project “Developing Access to Capital Markets for Ukraine’s Agricultural Sector.” The parties discussed the development of financing instruments for the real sector of the economy and the potential of new solutions for capital markets.

Oleksii Semeniuk reported this on his Telegram channel.

One of the key topics of discussion was agricultural notes — a tool that can expand business financing opportunities for future production.

“We see potential for expanding the use of agricultural notes — not only for agricultural production, but also for processing and other sectors where businesses need financing instruments for future production,” said the Chairman of the NSSMC.

Asset securitization and the possibilities of using new technological solutions, in particular distributed ledger technology (DLT), were discussed separately. In particular, the prospects for creating a regulatory “sandbox” were talked over.

“The launch of a regulatory ‘sandbox’ could be an effective tool for testing innovative financial solutions and new technologies in the capital markets,” said NSSMC Commissioner Maksym Libanov.

Another topic of discussion was electronic warehouse receipts, which could become an important part of the infrastructure of commodity and financial markets and open up new opportunities for trading and financing production.

The parties also touched upon the development of green bonds and approaches to ensuring the transparency of projects financed through them.

According to Oleksii Semeniuk, new instruments should be created in tandem with the market and meet the real needs of business.

“It is important that new instruments be created in tandem with the market and meet its needs. That is why we are continuing consultations with businesses and financial institutions,” added the Chairman of the NSSMC.