Over the past decade, sovereign issuers have increasingly turned to thematic, SDG-aligned debt instruments to address urgent development priorities. This shift is both timely and necessary—particularly for low- and lower-middle-income countries (L-LMICs), which face an estimated annual financing gap of $3.9 trillion to achieve the Sustainable Development Goals (SDGs). 

The United Nations Development Programme (UNDP) has supported over $31 billion in such transactions across more than 40 countries. Our support spans advisory services, framework development, capacity building, impact measurement, and post-issuance reporting.  

We also work to develop and share knowledge on the role of innovative debt instruments in financing the SDGs. We are proud to have recently produced a report, produced with the Singapore-based Impact Investment Exchange (IIX), where we highlight the critical and growing need for innovative financing, especially in L-LMICs. This was supported by Open Society Foundation, and we are grateful for philanthropic organisations such as OSF in investing in these innovative instruments.  

Today’s session brings together sovereign leaders and investors whose participation makes these markets viable. 

Let me highlight a few examples from countries represented here today—pioneers who deserve our recognition. 

Uruguay’s groundbreaking Sustainability-Linked Bond (SLB) features a unique step-up/step-down coupon structure tied to GHG reductions and forest conservation. UNDP serves as the independent verifier. 

In Kenya, we are working with the government, the World Bank, and others on an SLB linked to forest cover. We’re also supporting corporate issuances tied to local pension funds. 

In Cameroon, UNDP has provided two years of support—from capacity building to sustainability framework development. We recently assisted on a non-deal roadshow in London and look forward to supporting their market entry. 

Beyond SDG and SLB markets, UNDP has collaborated on a range of innovative instruments: blue bonds, green sukuks, and even an orange bond. In Fiji, with the UK’s Blue Planet Fund, we helped launch the first sovereign blue bond for marine conservation and sustainable fisheries. In Indonesia, we co-developed the Green Bond and Green Sukuk Initiative with the Ministry of Finance and the World Bank, mobilizing $1.25 billion for renewable energy, waste-to-energy, and sustainable transport. In Thailand, we supported Asia’s first sovereign SLB—a THB 30 billion issuance tied to GHG and EV targets. In Bangladesh, we’re partnering with IIX and the Economic Relations Division on a $1 billion Orange Bond focused on gender equity, climate action, and inclusive growth. 

These initiatives show the powerful synergy between national leadership and UNDP’s convening role. By working with debt offices and finance ministries, we help translate national SDG priorities into investible, impactful instruments. When designed effectively, thematic bonds can mobilize capital at scale and deliver measurable impact—in health, education, clean energy, and biodiversity. 

But issuing a sovereign SDG bond is complex. It requires macro-fiscal analysis, stakeholder coordination, adherence to ICMA principles, sound project selection, and transparent reporting. Developing countries often face capacity gaps, market risks, and debt sustainability concerns. To help address these  challenges, the GISD Alliance—under UNDESA and UNDP’s leadership—recently published Guidance on Sovereign SDG Bonds, based on interviews with 18 countries and $70.8 billion in SDG-branded issuances from 2016 to 2023. The guidance outlines best practices, barriers, and actionable recommendations. In this time of decreasing ODA I also want to emphasize the critical role of philanthropic capital in unlocking private capital through concessional financing. Philanthropic capital, such as grants and concessional loans, can significantly reduce upfront costs and risks for investors, making sustainable projects more financially viable. By bridging the risk-return gap, philanthropic capital attracts private sector investment, reinforcing fiscal sustainability and aligning bond issuance with long-term development priorities.  

As we transition to today’s panel, our goals are twofold: 

• To share emerging practices—from structuring instruments and defining KPIs, to securing second-party opinions and ensuring effective use of proceeds.
• To address persistent challenges—like guarding against “SDG-washing,” reducing data burdens, and sustaining long-term market growth. 

I invite our distinguished panelists—from Cameroon, Kenya, and Uruguay, alongside global investors such as PIMCO and Sida—to speak candidly about their experiences, the challenges they’ve faced, and how the UN system can help scale this market responsibly and impactfully. 

In closing, demand for SDG-aligned financing will only grow. The Outcome Document from the Fourth International Conference on Financing for Development calls for bold action—specifically “concrete steps to enhance fiscal space, address the debt challenges of developing countries, and lower the cost of capital.” Thematic bonds are highlighted as a key part of the solution. 

By building strong public-private partnerships, using UNDP’s technical expertise, and leveraging the GISD Alliance’s network, we can better mobilize capital for the SDGs—helping countries meet national priorities and advance the shared vision of Agenda 2030. 

Thank you.