MOU Signing Ceremony between GGGI and LSCO, witnessed by BOL and Luxembourg Govt in Vientiane, Lao PDR

Vientiane, Lao PDR, October 10, 2024 – The Lao Securities Commission Office (LSCO) and the Global Green Growth Institute (GGGI) signed a Memorandum of Understanding (MOU) to boost sustainable investment through the “Accelerating Corporate Thematic Bond Issuance in Lao PDR” project. This collaboration, backed by the Government of the Grand Duchy of Luxembourg’s Global Trust Fund on Sustainable Finance Instruments, aims to bolster green financing by facilitating the issuance of thematic corporate bonds, particularly green bonds.

The project is pivotal in advancing Lao PDR’s commitment to achieving its Nationally Determined Contribution (NDC) under the Paris Agreement. Through this partnership LSCO and GGGI will support interested Lao corporations to undertake preparatory technical activities for an initial corporate green bond issuance, in alignment with the Government of Lao PDR’s broader drive towards establishing a robust green financing systems within the country. Also, it aims to unlock the flow of private capital towards green and climate projects.

Mrs. Vathana Dalaloy, Acting Governor of the Bank of Lao PDR, expressed confidence in the initiative, stating, “The support for enhancing sustainable finance and thematic bond issuance has always been a key priority of the Lao Securities Commission Office. We are thrilled to collaborate with the Government of the Grand Duchy of Luxembourg and the Global Green Growth Institute on this project, which will activate the thematic bond issuance ecosystem.”

Mr. Xavier Bettel, Vice Prime Minister, Minister for Foreign Affairs and Foreign Trade, and Minister for Development Cooperation and Humanitarian Affairs of Luxembourg emphasized the longstanding cooperation between Lao PDR and Luxembourg, highlighting that “As a global sustainable finance hub, Luxembourg considers green financial instruments a crucial tool for mobilizing capital towards projects that align with the global climate agenda. As an example, the Luxembourg Green Exchange (LGX) is the world’s first platform exclusively dedicated to green, social and sustainable bonds. I am certain that this project will be a catalyst for the development of green bonds in the Lao PDR.”

From left to right: Mrs. Phengsy Phengmuong, Director-General, Lao Securities Commission Office, Mr. Soulivath Souvannachoumkham, Deputy Governor of the Bank of the Lao PDR, Mrs. Vathana Dalaloy, Acting Governor of Bank of Lao PDR, H.E. Mr. Xavier Bettel, Vice Prime Minister, Minister for Foreign Affairs and Foreign Trade, and Minister for Development Cooperation and Humanitarian Affairs Mr. Patrick Hemmer, Ambassador to Lao PDR, and Mr. Rowan Fraser, Country Representative of Global Green Growth Institute Lao PDR

Mr. Rowan Fraser, Country Representative of GGGI Lao PDR, highlighted the broader impact of the initiative, stating that “Lao PDR’s climate targets cannot be achieved with public financing alone – private capital is an essential component. GGGI is pleased to assist the government’s efforts to crowd in and channel private funds towards the green transition.” Mr. Fraser added, “For several years, GGGI has been working in Asia and Latin America to support thematic bond issuances and we are pleased to bring that support to Lao PDR also.”

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For further information about Thematic Bond Issuance, please visit:
First onshore verified green bond issuance in Viet Nam I Green Bonds Make More Cents? I Greed Bond Report 2021
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About the Global Green Growth Institute (GGGI)

The Global Green Growth Institute (GGGI) was founded as a treaty-based international, inter-governmental organization in 2012 at the United Nations Conference on Sustainable Development. GGGI supports its Member States in transitioning their economies toward a green growth model that simultaneously achieves poverty reduction, social inclusion, environmental sustainability, and economic growth. With 48 Member States and over 27 Partner countries and regional integration organizations in the process of accession, GGGI delivers programs and projects in over 51 countries. These initiatives encompass developing innovative green growth solutions, technical support, capacity building, policy planning & implementation, and assistance in building a pipeline of bankable green investment projects, project financing, investments, and knowledge sharing. GGGI’s work contributes to its Member States’ efforts to fulfill the Sustainable Development Goals and the Nationally Determined Contributions to the Paris Agreement.

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More information, visit: https://gggi.org