Programmatic Certification for Repeat Bond Issuers
‘Programmatic Certification’ streamlines the Certification for Issuers who plan to issue multiple Certified bonds against a large pool of assets. Rather than going through the process of Certification for each bond issuance, the whole pool is Certified at the beginning, at the time of the first bond issuance. Afterwards, when the Issuer issues more bonds against other parts of the same asset pool, each bond only requires post-issuance verification. This method makes the process significantly simpler for the Issuer.
How Programmatic Certification Works
There are four steps for issuers under the Programmatic Certification option:
- The Issuer identifies a very large pool of eligible assets and projects, which are Certified by the Verifier. The first bond in the programme is Certified for pre-issuance and post-issuance in the regular way. This ensures that the Issuer’s internal compliance framework is in place and that they have a large enough stack of eligible assets for future issuances.
- When the Issuer comes to issue again under their programme, they must supply the Climate Bond Information Form and receive pre-issuance Certification from the Board for each new bond, but the Issuer does not need to involve the Verifier before the issuance and this step is generally very quick.
- After the issuance of each bond, the issuer must engage a Verifier to provide Post-Issuance Assurance on the bond.
- Reporting obligations remain the same for each bond, including the submission of the Climate Bond Information Form before every issuance, and the annual report (which does not require the Verifier) on all bonds issued under the Program.
Note: The Issuer may at any time add or subtract from the pool of assets which was originally Certified, as long as each bond drawing from this pool receives Post Issuance Assurance Verification.
Here is the list of Issuers who are using Programmatic Certification (as of December 2018):
Information and short profiles on current issuers who have adopted Programmatic Certification can be found here.
For more understanding visit the Frequesnty Asked Questions on Programmatic Certification.
For more information, please email Rob Fowler, Head of Certifications, at email@example.com