Entry Requirements

Joining Luxembourg Green Exchange (LGX) is fast and straightforward. Follow this five-step process and gain entry to our dedicated green platform.

 

Step 1: List on one of our regulated markets
 

Before applying to join LGX, an issuer must first list his security on one of LuxSE's markets: the EU-regulated Luxembourg Market ("LuxSE") or the exchange-regulated Euro MTF market.

For more information on how to list, see our listings page
 


 

Step 2: Declare your security as green
 

Next, you will need to explicitly declare your security as “green” or equivalent (e.g. "climate awareness bond").

In practical terms, the issuer will have to clearly state the intended green nature of the bond by ticking the specific “green-box” in the (paper/online) application form [pdf - 262kb].

Only the issuer is 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 labelled your security green, the next step is to provide information about where proceeds from your security will be allocated. 

An issuer must clearly disclose the green nature of the use of proceeds into 100% financing or refinancing of green projects, according to the Green Bond Principles (GBP) and Climate Bonds Initiative eligibility taxonomy, or equivalent.
 


 

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 the establishment/review of an issuer’s Green Bond framework and/or second opinions. Methodologies can differ a lot from one consultancy firm to another.
  • Verification: Performed by qualified independent parties, such as auditors, it provides assurances on the alignment of the issuer’s claims or its internal framework. Verification can include the evaluation of the environmentally sustainable features of the underlying assets and may also reference external criteria.
  • Certification: Provided by qualified third parties/certifiers, it endorses the green bond, its framework or its use of proceeds against an external green assessment standard (e.g. CBI standards).
  • Rating report: Given by specialised research providers or rating agencies, green bond ratings apply to individual securities (or Green Bond frameworks/programmes) and can occasionally embed ESG considerations at issuer level.

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 regular ex-post reporting
 

To ensure that issuers act transparently, we ask that issuers provide information about security use of proceeds.

Minimum frequency is once during the lifecycle of the security, ideally 12 to 18 months after the issue of the green bond. Issuers can report more frequently on a voluntary basis.

Accepted formats of ex-post reporting include:

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

 

The aim is to inform the public about how funds are being allocated to projects and, where possible, the expected environmental impact. It is at the issuer’s discretion to choose its preferred reporting format, KPIs and frequency.

 


 

See our FAQs section for more information about LGX

 

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Contact

If you have any queries about listing on Luxembourg Green Exchange, please contact:

Chiara Caprioli (Business Development Manager)
Tel: +352 47 79 36 417
cca@bourse.lu

If you wish to list a green bond, please send an application to bolide@bourse.lu

LGX recognised standards

Logo - Green Bond Principles

Logo_Climate_Bonds_Initiative

 

Brochure

Luxembourg Green Exchange

Brochure - LGX - Widget

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