The Central Bank of Bahrain has opened a consultation on proposed amendments to its Capital Markets Rulebook Volume 6 (Offering of Securities Module) that would create a dedicated regulatory framework for issuing and offering Sustainable Debt Securities and Sustainability-Linked Debt Securities in Bahrain. The draft introduces eligibility conditions and a disclosure, reporting and verification regime intended to align such instruments with “international best practice”. Under the proposals, an issuer would need prior Central Bank of Bahrain approval before referring to itself as an issuer of sustainable or sustainability-linked debt securities in Bahrain. Sustainable Debt Securities would be subject to use-of-proceeds requirements tied to defined eligible green and social project categories, with internal project evaluation and selection processes, proceeds management via a designated account or equivalent tracking, and annual public reporting on allocations and impacts. An independent environmental consultant or adviser would be mandatory for Sustainable Debt Securities to assess, at minimum, the project evaluation and selection process, project feasibility and alignment with sustainable development goals, and alignment with the framework’s core components. Sustainability-Linked Debt Securities would be governed through KPI and Sustainability Performance Target selection criteria, disclosure of trigger events that can change financial or structural characteristics, and ongoing public verification at least annually against each SPT for each KPI until after the last trigger event, with additional requirements where material KPI or SPT changes occur before maturity. The Central Bank of Bahrain has asked stakeholders to complete an attached questionnaire and submit comments, including “nil comments”, by 30 September 2025. The proposed text is published on the Central Bank of Bahrain website under “Open Consultations”.
Central Bank of Bahrain 2025-09-02
Central Bank of Bahrain launches consultation on a rulebook framework for sustainable and sustainability-linked debt securities with responses due 30 September 2025
The Central Bank of Bahrain is consulting on amendments to its Capital Markets Rulebook Volume 6 to establish a regulatory framework for Sustainable and Sustainability-Linked Debt Securities. The draft includes eligibility conditions, a disclosure, reporting, and verification regime, and requires prior approval for issuers. Sustainable Debt Securities must adhere to use-of-proceeds requirements, while Sustainability-Linked Debt Securities are governed by KPI and Sustainability Performance Target criteria.