How to access LGX

Follow this simple 5-step process and display your securities on the Luxembourg Green Exchange.




schema-LGX-steps_how_access_lgx.jpg

Step 1: List on a LuxSE Market

In order to apply to join LGX, an issuer must first list their security on one of LuxSE's markets: the EU-regulated Bourse de Luxembourg market or the exchange-regulated Euro MTF market.

Step 2: Declare your security green, social or sustainable

Next, you will need to explicitly declare your security as green, social or sustainable. The issuer will need to clearly state the intended green nature of the bond by completing our LGX application form.

LGX application form

The issuer is solely responsible for signing this application form. The issuer cannot give power of attorney to the listing agent or any other intermediary.

Step 3: Disclose use of proceeds

Once you’ve declared your security green, social or sustainable, the next step is to provide information about where proceeds from your security will be allocated.

An issuer must clearly disclose the nature of the use of proceeds into 100% financing or refinancing of green projects, social projects or a blend of both in accordance with the Green Bond Principles and/or the Climate Bonds Initiative's eligibility taxonomy and the ICMA Guidance for Issuers of Social Bonds.

This can be done through our LGX application form, in addition to other verified disclosure methods.

LGX application form

Step 4: Provide an external review

To ensure that proceeds are independently verified, we ask that issuers provide an external review of the security from a third-party expert before applying to join LGX.

An external review can be provided in one or more of the following forms:

  • Consultant Review: External advice by consultants and/or institutions with recognised expertise in relation to sustainability or other aspects of the issuance of a green, social or sustainable bond, such as the establishment/review of an issuer’s framework and/or a second opinion.
  • Verification: Performed by qualified independent parties, such as auditors, it provides assurance on the alignment of the issuer’s claims or its internal framework. Verification can include the evaluation of the environmental and/or sustainable features of the underlying assets and may also reference external criteria.
  • Certification: Provided by qualified third parties/certifiers, it endorses the bond, its framework or its use of proceeds against an external green or social assessment standard (e.g. CBI standards).
  • Rating report: Given by specialised research providers or rating agencies, bond ratings apply to individual securities (or issuance/programmes).

This should be provided when listing and will be assessed against the use of proceeds, selection process, as well as the management of proceeds.

Step 5: Commit to post issuance reporting

To remain on LGX, issuers must provide information about the intended and actual use of proceeds. The aim of post issuance reporting is to inform the public about how funds are being allocated to projects and, where possible, the expected environmental, social and sustainable impacts.

Minimum frequency is once during the lifecycle of the security but issuers can report more frequently on a voluntary basis. The reporting should be supplied 12 months after the issue of the bond.

Accepted formats of post issuance reporting include:

  • Use of Proceeds Reports or specific Audit/Verification reports;
  • ESG/Sustainability Reports featuring information on the funding behind the security;
  • Newsletters (or equivalent) giving appropriate information on the use of proceeds (projects, sectors, geographies and, if possible, expected impact); and/or
  • Impact Reports

It is at the issuer’s discretion to choose its preferred reporting format, KPIs and frequency, and to report accordingly.

Read our FAQs for more information about post issuance reporting.

FAQ – LGX