The world’s first sovereign green bond has resulted in the reaffirmation of Luxembourg’s position as a leading global international centre for Climate Finance.
The bond, issued by the Republic of Poland, being listed on the Luxembourg Stock Exchange (LuxSE), as well as the announcement of the first Climate Finance Label granted by LuxFLAG to three international funds.
Poland, one of the leading sovereign issuers listed on the Luxembourg Stock Exchange, has chosen LuxSE as the listing venue for the first sovereign green bond in international capital markets. The EUR 750 million green bond will, in parallel, be displayed on the Luxembourg Green Exchange (LGX), launched in September 2016. The LGX, the world’s first platform dedicated exclusively to green securities, provides issuers and investors an environment where they can come together and fulfill their green objectives.
Asked about the selection criteria when choosing the listing venue for the green bond, the Polish Deputy Minister of Finance, Piotr Nowak, explained: “LuxSE is one of the biggest stock exchanges for international bonds in Europe, and a very innovative one. The recent implementation of the Green Exchange is a proof of an open-minded approach towards the needs of financial markets. On top of that, we received strong recommendations from market participants to list there.”
The proceeds of the sovereign green bond will be used for renewable energy, clean transportation, sustainable agriculture operations, afforestation, national parks and reclamation of heaps. Other sovereigns have already publicly indicated that they will join the green bond issuance trend, already well advanced among corporate issuers and development banks.
Moreover, the finance labelling agency LuxFLAG announced this week the first international funds that have been awarded the Climate Finance Label: East Capital China Environmental, Green for Growth Fund Southeast Europe and NSF Climate Change+ Fund.
LuxFLAG launched this new label in September with the aim to set a transparent environment for Climate Finance investments with a view to unlocking capital from institutional and private investors to help finance climate change action. In order to receive the label, funds must dedicate at least 75% of assets under management to investment in climate change mitigation and/or adaptation activities.
As of today, LuxFLAG has issued 58 fund labels: 30 Microfinance, 11 Environment, 14 ESG and 3 Climate Finance. They represent a total of EUR 13.5 billion assets under management.
Like our Facebook Page
Investing in a Sustainable Environmental Future for Northern Virginia
Prominent Trends in Seafood Sustainability in 2022
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
Tips for Optimal Waste Management in Your Home
The Agricultural Benefits of Weather Stations for Eco-Friendly Farmers
What Makes Online Furniture Eco-Friendly?
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
4 Ways To Build A Sustainable Home
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
Why Transitioning Your Company to an EV Fleet Makes Sense?
6 Practices for Sustainable and Eco-Friendly Plant Operations
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy11 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor