BRVM secures major deal with Luxembourg exchange

BREAKING NEWSOctober 6, 2023 at 11:52 AM UTC

West African regional stock exchange, the Bourse Régionale des Valeurs Mobilières (BRVM) has signed an agreement with the Luxembourg Stock Exchange (LuxSE) on sustainable finance, an initial step in a collaborative effort aimed at enhancing sustainable finance within the markets governed by BRVM.

The BRVM plays a pivotal role within the West African Economic and Monetary Union (WAEMU), which aims to enhance integration among Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. BRVM is a shared exchange among these eight countries. On the other hand, the Luxembourg Stock Exchange (LuxSE) is a prominent listing venue for international debt securities and a pioneer in sustainable finance.

Through the agreement, both exchanges will explore the establishment of a bond market dedicated to green, social, sustainability, and sustainability-linked bonds at BRVM and also assess opportunities for dual-listing sustainable securities.

Key Takeaways

Sustainable finance has witnessed remarkable expansion within emerging markets in recent years. This growth has been marked by substantial advancements in ESG policies and frameworks, aimed at mobilizing capital for sustainability, as well as a surge in creative capital market products and bond issuances aligned with sustainability objectives. In Africa, the OECD estimates the sustainable financing gap until 2030 at about $1.6 trillion while the continent needs additional financing of about $194 billion annually to achieve the Sustainable Development Goals by 2030. Countries like Nigeria, Egypt, and South Africa have made significant strides in leveraging public capital markets to drive sustainable investments and BRVM’s recent deal will help ensure the francophone region is not left behind.