OVERVIEW
SAMPLE AGENDA

The facilitated Green, Social and Sustainability (GSS) Bonds Executive Online Training is an exclusive program offered by invitation only to selected banks from emerging markets. The program is an IFC initiative under its Green Bonds Technical Assistance program (GB-TAP) and designed in partnership with ICMA to provide deep insight on GSS bonds issuance and the underlying drivers in sustainable finance.

The course is delivered via three pillars, (i) online self-paced modules, (ii) virtual interactive classes and (iii) team case study workshops including a simulated investor pitch presentation to real market investors.


Course Outcomes

This practice-oriented training is designed specifically for emerging market banks interested in issuing GSS bonds. The training will seek to strengthen the bank staff’s foundational skills in green and sustainable finance. The course will touch on operational considerations in the global market and regulatory trends, the materiality of Environmental, Social and Governance (ESG) in credit analysis and financial reporting. Topics covered also include the investor perspective, practicalities of GSS bonds issuance, reporting to investors, and use of second opinions, among others.

As a result, participants can expect to:
  • Improve their ability to address GSS bonds issuance’s strategic and operational imperatives, including the dynamics of originating and identifying underlying assets.
  • Increase their knowledge about the mounting demand for GSS bonds and, thus, the opportunity for their bank to diversify its funding base.
  • Increase their awareness regarding the importance of links to sustainable development strategy at their bank, and how they and their bank can be a part of the solution.
  • Improve their capacity to attract new investors and customers.

Structure and Study Time


The training will provide in-depth understanding of the mechanics of green, social and sustainability bonds. It takes participants from the big picture policy context to introducing the underlying drivers of market development, main product features and regulation. Subject matter experts will talk about the Green and Social Bond Principles, the Sustainability Bond Guidelines and the new Sustainability-Linked Bond Principles.

More importantly, they will explain how these principles work in practice, including evaluation and selection of eligible projects for funding, the role of external reviewers and guidance on reporting. The training is illustrated with examples from the market and delivered by industry leaders. The team workshops are designed to get participants ready to apply the knowledge within their organization. The self-paced online modules include a quiz at the end of each module to ensure participants have grasped the content.

The Training is delivered over a period of three weeks requiring an 18-hour time commitment.

Week 1:
Complete mandatory self-paced online modules and read the Green Bonds in Emerging Markets: Isbank case study (Part A & B), which requires about 2.5 hours.
Week 2:
Three live virtual classes of  2.5 hours each, including group workshops.
Week 3:
Two live virtual classes of 2 hours each and two live sessions of group work including a pitch presentation to investors.


Participant Profile

Each cohort/class will train about 36 senior staff from emerging market banks that have been vetted by IFC. The participants’ banks selection is based on bottom-up analysis of GSS bonds issuance potential and also relevance for cross-border portfolio investors, taking into account Environmental, Social, and Governance (ESG) as well as credit risk criteria.

Banks invited by IFC are encouraged to nominate 2-3 senior staff to attend the program from:
  1. Treasury: bank’s treasury department and involved in capital markets activities, especially bond issuance.
  2. Asset origination: corporate lending (notably for renewable energy, green buildings, clean transport, which are often the primary use of proceeds; other purposes include sustainable water, waste management, land use, etc.) or from retail lending (e.g., green mortgages or electric/hybrid vehicle leasing).
  3. Sustainability: the leader on areas such as sustainability strategy, sustainable finance development, ESG research analyst relations, and sustainability reporting.

Completion Certificate

Participants will receive a Certificate of completion signed from IFC and ICMA which can be used as evidence of professional development. To qualify for the certificate of completion, participant must:
  1. Complete the two-hour of self-paced online modules, including the quizzes.
  2. Attend all live interactive online classes.
  3. Actively participate in live online team workshops and contribute to the delivery of an hour-long simulated investor pitch presentation.

Fees


This unique training program is offered by the IFC Green Bond Technical Assistance Program as a global public good in partnership with the Swedish International Development Agency (SIDA), Switzerland’s State of Economic Affairs (SECO), and Luxembourg’s Ministry of Finance. As such the training is free of charge to invited banks.


Trainers and Networking


The training is delivered by leading market practitioners who will provide insights into global best practices and their relevance for emerging markets financial institution issuers. Trainers include training faculty from IFC, ICMA, leading market investors, investment banks, second opinion providers and banks who have issued GSS bonds. Delegates will also extend their network among leading peers from various emerging markets attending the course.


About GB-TAP


The Green Bond Technical Assistance Program (GB-TAP) aims to stimulate the supply of green bonds in emerging markets by creating and disseminating global public goods. For more information on GB-TAP and its publicly available research reports, case studies, and webinars please visit our webpage at https://www.environmental-finance.com/content/focus/creating-green-bond-markets/ .


Participation in this course is by invitation from the International Finance Corporation (IFC) only - please contact Kaikham Onedamdy on konedamdy@ifc.org for more information.

      Describe the types of market participants and appreciate why these firms engage in SLB, and their impact on capital markets and retail investors
      Understand the operational, legal and regulatory risks and issues involved 
      Comprehend the advantages/disadvantages of using different types of collateral 
      Appreciate the impact that corporate actions have on the lent security and on securities collateral
      Discover some relevant anecdotes and SLB case studies
Pre-learning
  • Delegates are given access to the learning management system a week prior to the course, and are expected to complete the following modules of the ICMA Introduction to Green, Social and Sustainability Bonds online self-study course:
    • Module I - The Big Picture: Policy Context of Sustainable Finance
    • Module II - Product Snapshot: Green and Social
    • Module III - Market organisation and product guidance
    • Module IV - Dynamics in GSS bond markets
  • Note that all videos must be viewed and quizzes complete before Webinar 1

Webinar 1: Making the Case for GSS Bonds


09:00    Welcome remarks + participant introduction/expectations
09:30    State of Market featuring guest speakers
09:40    Case for/why GSS Bonds led by facilitators and featuring guest speakers
10:00    Consolidation of Online Modules including GSS principles and stakeholders led by facilitators
11:15    Groupwork – Team Composition & Workshops Overview led by facilitators
11:30    END


Webinar 2: Applying Case Study to Principles Pillars and Regional Context

09:00    Regional Context featuring guest speakers
09:30    Case Study - led by facilitators with representatives from bank
10:50    Break

11:00    Synopsis of key objective and learning process of training led by facilitators
11:15    Team Workshops Instructions and Case Study led by facilitators
11:30    END


Webinar 3: Going to Market and Group Workshops

09:00    Getting organized going to market presentation featuring guest speakers
09:30    Groupwork – workshop activities led by facilitators
11:00    Workshop feedback led by facilitators
11:15    Investor pitch preparation led by facilitators
11:30    END


Webinar 4: Investors Perspectives


09:00    International Investors Panel - Moderated by ICMA featuring investors from global organisations
10:00    Case study led by facilitators and featuring guest speakers
11:00    Pitching in A Virtual Environment featuring guest speakers
11:20    Post-training support to Issuers led by facilitators
11:30    END


Webinar 5: Team Pitch Preparation


09: 00   Groupwork - investor pitch preparation led by facilitators
11:30    END


Webinar 6: Investor Pitch Competition

Each team gets to present their green bond framework to real industry investors.

09:00:  
  • Team A – Panel One
  • Team C – Panel Two
  • Team E – Panel Three
10:00:
  • Team B – Panel One
  • Team D – Panel Two
  • Team F – Panel Three

Webinar 7: What Is New in the Market


09:00    Sustainable Journey: Towards a New Economic Model, the Cost and Risk of Inaction featuring guest speakers
10:00    What is new in the markets featuring guest speakers
10:45    Complete Feedback Survey & Break led by facilitators
11:00    How blockchain and other technologies help grow and strengthen the sustainable bond market featuring guest speakers
11:20    Announcement of Winner of Investor Pitch led by facilitators
11:25    Closing remarks led by facilitators
11:30    END








    Securities Lending & Borrowing (SLB) – The Fundamentals 
    What is Securities Lending?
    The Purpose: Why Do Lenders Lend & Borrowers Borrow?
    Participants & Structure
    Trading Strategies
    Examples
    SLB Trade Lifecycle - An Overview
    Short Selling, Naked Short Selling
    Locates, Trade Execution & Fails
    Margin
    Corporate Events
    Billing
    The Marketplace – Participants & Stakeholders
    Lenders, Borrowers and Intermediaries 
    Examples
    The Lender’s Perspective: Motivations and Considerations
    The Borrower’s Perspective: Motivations and Considerations
    Global custodians
    Third-party lending agents
    Central counterparties
    Anecdotes
    SLB Trade Lifecycle
    Pre-trading, Locates
    Trade execution
    Pre-settlement
    Settlement 
    Buy-ins
    Mark to Market 
    Margin calls
    Recall/return of lent settlements
    Fees & Billing
    Assets & Collateral
    Equity vs Fixed Income 
    Fundamental collateral concepts
    Margin: Purpose & use 
    Types of collateral
    Rehypothecation
    Legal Documentation
    GMSLA
    Securities lending agency agreement
    GMRA
    Updating Books & Records
    Securities bookkeeping: Definition & purpose
    Importance of updating books & records
    Updating books and records for lent/borrowed securities, cash and non-cash collateral, fees and rebates
    SLB and Corporate Actions
    Corporate actions: Overview 
    Income
    *Cash dividends
    *Lent securities
    *Short sale proceeds
    *Lent/borrowed equity
    Voting 
    Withholding tax
    Risks in Securities Lending & Borrowing 
    Market Risk
    Credit Risk
    Operational Risk
    Legal Risk
    Reputational Risk 
    Regulation
    Introduction
    EU short selling & financial transactions tax
    CSDR 
    Reporting to a central trade repository
    Recent SLB Scandals & Controversies
    The Lehman saga uncover
Follow ICMA Education:

linkedin
ICMA Zurich

T: +41 44 363 4222
Dreikönigstrasse 8
8002 Zurich
ICMA London

T: +44 20 7213 0310
110 Cannon Street
London EC4N 6EU
ICMA Paris

T: +33 1 70 17 64 72
62 rue la Boétie
75008 Paris
ICMA Brussels

T: +32 2 801 13 88
Avenue des Arts 56
1000 Brussels
ICMA Hong Kong

T: +852 2531 6592
Unit 3603, Tower 2
Lippo Centre
89 Queensway, Admiralty
Hong Kong
 
Copyright © 2021 International Capital Market Association.