Technical Update: Launch of the Sustainable Bond Market
On 11 October, London Stock Exchange announced the launch of its expanded Sustainable Bond Market (SBM), building upon the success of its existing green bond segments launched in 2015.
The SBM introduces new dedicated segments for social and sustainability bonds, in addition to the existing green bond segments, that further enable investors to distinguish between different types of sustainable bonds based on independently verified frameworks and appropriate use of proceeds.
It also introduces a segment for bonds classified at issuer-level, allowing “pure play” businesses in the green economy to make their bonds visible to investors. Green Economy issuers on London Stock Exchange are currently allowed to display bonds on this segment based on their green revenues exceeding 90%.
The SBM requires issuers to commit to mandatory annual post-issuance reporting through the lifetime of the bond. This includes annual allocation reporting for use-of-proceeds instruments such as green, social and sustainability bonds.
Technical Briefing on the Sustainable Bond Market
In order to provide more information on the launch of the SBM and associated changes, we will be organising a Technical Briefing (in person or via conference call) in the coming weeks.
Please fill in the form on the right hand side to register your interest.