€1 billion in green bonds issued at Luxembourg Stock Exchange

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Around €1 billion in green bonds have been issued on the Luxembourg Stock Exchange (LuxSE) over the past few days through the Luxembourg Green Exchange (LGX), a newly created platform for sustainable investment created by LuxSE after the COP 21 agreement.

A first €500 million green bond was issued by the China Construction Bank Corporation (CCB) – China’s second largest bank – at the end of last week.

The Chinese bank said that net proceeds from the bond issuance will be used to finance projects linked to clean transportation, renewable energy and pollution prevention and control, without providing further details.

“I want to commend CCB for aligning their bond with international green bond standards. This issuance will help attract foreign investors to participate in the construction of China’s green financial system and promote the development of green industries in China,” said the LuxSE CEO, Robert Scharfe.

The second €500 million green bond was issued yesterday in a separate transaction by the European Investment Bank (EIB), which said in a press release that the operation is aimed at supporting sustainable finance.

The bond issuance represents EIB’s first Sustainability Awareness Bonds on the Luxembourg Stock Exchange. “The Luxembourg Green Exchange is the world’s first platform exclusively dedicated to green, social and sustainability securities, and today displays half of the world’s listed green bonds,” said Scharfe.

“Sustainability Awareness Bonds will focus on high-impact projects selected on the basis of comprehensive sector and impact definitions, developed in consultation with the European Commission Technical Expert Group on Sustainable Finance, which includes both EIB and Luxembourg Stock Exchange experts, that will enable detailed investor reporting and transparency and contribute to ongoing international sustainable finance best practice,” commented the EIB.

EIB has been active in the green bond market since 2007 and, according to its statement, its issued Climate Awareness Bonds (CAB’s) now total around €23 billion.

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