93 CAPITAL MARKETS LAW shall be applied while defining “green” in the context of Green Bond practice. The Draft provides a framework for all Green Bond issuers, including those from the public and private sectors, including both financial and non-financial companies. The issuer may be from inside or outside of the European Union. All types of bonds, including covered bonds, asset-backed bonds, and project bonds can be issued as European Green Bonds as long as they meet the conditions in the Regulation. In addition, the Draft establishes a set of rules that must be followed by Green Bond issuers in order to issue bonds labeled as European Union Green Bonds (“EUGB”). In accordance with Article 4(2) (a) of the Treaty on the Functioning of the European Union, the Draft falls within the competence shared between the European Union and its member states. The Draft also aims to meet the need for a central registration and supervision regime coordinated by ESMA at the European Union level, especially for organizations conducting external review. Article 1 of the Draft sets out the conditions that must be met by bond issuers who want to use the label “European Green Bond” and establishes a registration and supervision system for external review institutions. According to the Draft Regulation, • In order to ensure transparency, a “Green Bond factsheet” shall be published before the bond issue, and this factsheet shall be subject to pre-issuance review. (Art. 8) • Until the full allocation of the proceeds, annual reports shall be prepared. (Art. 9) • Apost-issuance review shall be prepared after the full allocation of the proceeds of the bond. (Art. 9) • Bond issuers shall, after the full allocation of the proceeds, and at least once during the lifetime of the bond, draw up a European Green Bond impact report on the environmental impact. (Art. 10)
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