The London Stock Exchange reports the launch of a range of new segments on its fixed income markets dedicated to the issuance of green bonds (the LSE helpfully classifies as green bonds any type of bond instrument where the proceeds of the capital raised will be exclusively applied to finance or re-finance, in part or in full, new and/or existing ‘green’ projects, it adds, though it fails to define 'green' itself).
It says the new segments provide issuers with a full suite of solutions to support green bond issuance, offering the choice of a range of listed markets and trading models for both retail and wholesale investors. Designed to meet the needs of all green bond issuers, trading models include continuous on-screen market maker quoting, end-of-day pricing or OTC-style trade reporting only, the LSE says.
The City of Gothenburg is the first issuer to use a new dedicated green bond segment on London Stock Exchange with its recent SEK 1.05 billion green bond issue. That organisation has also moved its existing green bonds into the same segment for trading.
Gillian Walmsley, head of fixed income, London Stock Exchange said: "London Stock Exchange Group is a committed supporter of green financing and we see huge growth potential for the sector. Our comprehensive offering will improve access for issuers and transparency for investors and by providing dedicated green bond segments we are leading the development of London as a key international hub for Green Finance."
Danijel Afolter, portfolio manager, City of Gothenburg said: "City of Gothenburg is an active supporter of the development of green bonds and has been a pioneer in this space, issuing the first Nordic green bond and being the first city in the world to issue a green bond. As well as attracting new investors and increasing transparency, the City of Gothenburg undertakes extensive environmental work which forms a strong foundation for green bond issuance. We are very proud of our work in green finance and listing our green bonds on a dedicated green bond segment on London Stock Exchange was an easy and natural step to take."
