LuxSE - The Home of Green Bonds
A pioneer in the green investment space, LuxSE is the premier venue for Green bond listings in the world
In 2007, the Luxembourg Stock Exchange (LuxSE) became the first stock exchange in the world to list a Green bond following the launch of the European Investment Bank’s “Climate Awareness” bond.
Today, the LuxSE lists more than 110 Green bonds in 20 currencies from over 25 different issuers. With more than 50% of all Green bonds listed globally at LuxSE, we have become the leading international exchange in this asset class, underscoring our commitment to facilitating green investments globally.
What is a Green bond?
Green bonds are debt instruments that have been issued to fund projects that have positive environmental or climate benefits. Proceeds from these bonds are typically earmarked for green projects but are backed by the issuer’s entire balance sheet.
Check out the EIB's video about what a green bond is and what makes this asset class so unique
Listing a green bond in Luxembourg
Transparency about the use of proceeds, and the environmental benefits achieved, is fundamental for the credibility of the asset class and investors’ trust.
To be recognised as a “green” issuer, self-labelled or third-party labelled Green bonds need to demonstrate, via their mandatory prospectus, that:
Proceeds from the bond will be used for green investments or loans within market-accepted activities
- The issuer commits to meet certain criteria with respect to management of proceeds, transparency and reporting.
Who lists Green bonds?
LuxSE attracts a wide range of green issuers including supranationals, development banks and private sector companies.
Prominent Green bond issuers include:
European Investment Bank
The world’s leading issuer of green bonds by volume, the European Investment Bank issues all of its “climate awareness” bonds at LuxSE since its launch in 2007.
Kreditanstalt für Wiederaufbau
Two Green bonds worth €1.5 billion were issued by the German government-owned development bank, the largest green bond issues in both 2014 and 2015.
Bank of China
Bank of China became the first Chinese bank to list a Green bond in Europe after issuing a $2.8bn green bond on LuxSE.
Paris COP21 Agreement: enhanced transparency at the service of green finance
The COP21 Paris Agreement reached on 12 December 2015 saw a first-time consensus of some 200 states to cut greenhouse emissions and in particular to (i) keep global temperatures "well below" 2.0C (3.6F) and "endeavour to limit" them even more, to 1.5C (ii) limit the amount of greenhouse gases emitted by human activity to the same levels that trees, soil and oceans can absorb naturally, in the second part of the century (iii) review each country's contribution to cutting emissions every five years and (iv) provide $100bn a year in climate finance for the developing countries by 2020, with a commitment to upscale the contribution in the future.
LuxSE endorses collective action towards the transition to a low carbon economy and commits to Paris's pledges by promoting a stronger and wider access to green finance.
As a capital markets intermediary committed to a sustainable economy, we have set to facilitate the access to green bond instruments to 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.
Major green finance events:
6 SEPT - The Euromoney/GlobalCapital Sustainable & Responsible Capital Markets Forum
Amsterdam, NL - Program
LuxSE speaker: Maurice Bauer, Secretary General
Bank of China (BoC) becomes first Chinese Financial Institution to list a Green Bond on the Luxembourg Stock Exchange (LuxSE)
LuxSE - The home of Green Bonds
Our Engagement for Sustainable Finance
As a member of the Sustainable Stock Exchange Initiative and Climate Bonds Initiative, LuxSE aims to facilitate access to green financing and promote the adoption of recognised green standards.