Luxembourg, 19 February 2016
Today, the Luxembourg Stock Exchange (LuxSE) celebrated an important milestone in its commitment to green finance, with the listing of the 100th green bond admitted on its markets on 18 February 2016.
An event to mark this achievement was held by LuxSE in the presence of Pierre Gramegna (Luxembourg’s Finance Minister), Dr. Werner Hoyer (President of the European Investment Bank) and Robert Scharfe (CEO of the Luxembourg Stock Exchange).
The issue (XS1107718279) was originated by the European Investment Bank (EIB) and brought EIB’s Climate Awareness Bond (CAB) 11/2026 to EUR 1.5bn, making the CAB the largest green bond in this part of the curve.
EIB has also previously issued two other green benchmarks in EUR (the EUR 1.5bn CAB due 11/2023 and the EUR 3bn CAB due 11/2019) which are currently the largest green bonds outstanding, and also listed at LuxSE.
In 2007 the EIB launched and listed on LuxSE the first ever green bond, kicking off the market. Both this pioneer listing and today’s latest listing highlight EIB’s early and systematic commitment to promote direct capital market engagement in the area of climate finance, as well as LuxSE’s commitment to accompany green issuers with the highest transparency, dedicated to this growing market segment. The EIB has led by example in providing a transparent and accountable green bond product.
The relevance of these commitments for the market was underlined by the event attendance of the underwriters of the two transactions: Bank of America, Commerzbank and Unicredit in 2007; Bank of America, Barclays, Commerzbank, HSBC and Natixis last week.
Today, with 100 green bonds listed in 20 currencies by 20 issuers, LuxSE is by far the leading exchange at international level.
Following the COP21 agreement, green bond issuance is expected to play an increasing role in green finance and stock exchanges can play a distinctive role for scaling-up the market promoting transparency, accountability and comparability while facilitating investor assessment and public confidence.
As a reputable stock exchange committed to sustainability, LuxSE is committed to the further growth of the green bond market and is determined to do all that is necessary to facilitate green fund raising and offer the highest transparency to investors.
Comments on the issue:
Robert Scharfe, CEO of the Luxembourg Stock Exchange, said: "Today is a very strong milestone in the current momentum the green bond market enjoys. We have had the pleasure to list EIB's very first Climate Awareness Bond opening the green bond market in 2007 and have seen market participants' trust increasingly confirmed ever since. With this 100th green bond listed on our exchange we recognize EIB's outstanding contribution to the evolution of green standards and commit to further accompany green issuers in the next phase of the market."
Pierre Gramegna, Minister of Finance in Luxembourg said: “Sustainable development and the green economy are increasingly important economic growth drivers. Initiatives to make the green bond market more attractive are flourishing throughout financial centres. The fact that the Luxembourg Stock Exchange is listing its 100th green bond underlines the pioneering role of the Luxembourg financial centre in this area, as in many others. Innovation is the engine of our success. The Luxembourg Stock Exchange is likely to play a pivotal role in the funding of green entrepreneurship, supporting the growing market for green bonds in Luxembourg and ensuring appropriate transparency”
Werner Hoyer, President of the EIB, said: “The Luxembourg Stock Exchange and the EIB have a strong partnership and history together as most EIB bonds are listed here. Less than ten years ago, LuxSE and the EIB were pioneers in launching the first green bond and today we can celebrate impressive results. The Luxembourg Stock Exchange has shown clear leadership in listing green bonds and the EIB has become the largest issuer in this market. This 100th bond issue on LuxSE strengthens a path of trust, cooperation and vision to supporting climate action.”
About Luxembourg Stock Exchange (LuxSE)
With 40,000 listed securities, including some 26,000 bonds, from 3,000 issuers in 100 countries, LuxSE is the world’s number one exchange for the listing of international securities and offers a unique full service throughout listing, trading and reporting.
LuxSE operates two markets: an EU regulated market (“Bourse de Luxembourg”) and an exchange-regulated market (“Euro MTF”). All securities are tradable on Euronext’s UTP platform.
LuxSE also operates a specialist subsidiary, Fundsquare, which provides services to substantially support and standardize cross-border distribution of investment funds.
More information on www.bourse.lu
As the leading stock exchange in the world for the listing of green bonds with 100 listings and as a capital markets intermediary committed to a sustainable economy, the Luxembourg Stock Exchange (LuxSE) facilitates access to green bond instruments for an increasing number of issuers, bearing in mind both the importance of full disclosure for the integrity of the asset class at the service of investors specific environmental and performance goals and the opportunity to help green issuers with different fund-raising capabilities raise money without unnecessary burden.
We voluntarily participate in several initiatives, through dialogue with the Luxembourg Government, ICMA GBPs, the Sustainable Stock Exchanges Initiative (SSE), the World Federation of Exchanged (WFE), supranational organizations like the European Investment Bank, investors and regulators, to promote long-term sustainable investment and improved environmental, social and corporate governance disclosure and performance among companies listed on our exchange.
Please visit our green bond page on https://www.bourse.lu/listing-green-bonds
About the European Investment Bank (EIB)
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The Bank’s strong credit standing is underpinned by exceptional asset quality, a strong capital base, firm shareholder support, conservative risk management and a sound funding strategy.
The Bank’s funding strategy combines a consistent and transparent approach with flexibility and innovation, both in terms of product and maturity.