Issue Green, Sustainability and Social Bonds in London

London Stock Exchange’s dedicated Sustainable Bond Market champions innovative issuers in sustainable finance and improves access, flexibility and transparency for investors.

In 2015, we became the first exchange to set up dedicated Green Bond Segments. Now our expanded Sustainable Bond Market offers a wide range of opportunities for green, sustainability, social and Issuer-level classified bonds (via Green Revenue eligibility or Sustainability-Linked instruments) as the need for investors and companies to manage climate risks and create impact becomes ever more important.

Why choose London’s Sustainable Bond Market (SBM)

Breadth of offering
London’s SBM covers a full suite of asset classes and instrument types, ranging from plain vanilla bonds to more complex instruments such as asset-backed securities. Combined with expertise across LSEG in primary, secondary markets, data and post-trade services, SBM helps deliver the broadest sustainable finance platform to issuers and investors.
World class peer group
Display your bonds alongside high-profile international issuances on SBM from supranationals, local governments and municipalities, as well as corporates, many of which are world firsts in terms of currency, geography or structure, including the first certified green bonds out of China, India, the Middle East and first sovereign green bonds from Asia Pacific and the Americas.
International investor base
SBM delivers access to markets representing the largest, most sophisticated and long-term oriented investor base for sustainable finance, offering a uniquely deep pool of international liquidity. London Stock Exchange remains committed to active engagement with investors in order to support our markets with innovation and effective policies.
Enhanced visibility and robust standards
Securities admitted to SBM are subject to robust standards, to enhance investor confidence in the level of disclosure related to their sustainability frameworks and reporting. SBM offers issuers the opportunity to display key documents such as external reviews, sustainability frameworks and annual sustainability reports on their dedicated profiles. Commitment to annual reporting is required.
Flexibility
SBM offers dedicated segments for green, social, sustainability, and issuer-level classified bonds (including both Green Revenues eligible and Sustainability-Linked instruments). Bonds on SBM can be admitted to London Stock Exchange’s Main Market and International Securities Market (ISM). We also provide a range of secondary market trading options, so that issuers can offer investors appropriate liquidity and price discovery mechanisms.

London’s sustainable debt finance credentials

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Bonds admitted to London’s Sustainable Bond Market
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Total money raised from securities admitted to London’s Sustainable Bond Market
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Companies from around the world issuing green, sustainability and social bonds in London

Internationally recognised

Part of the United Nation’s Sustainable Stock Exchange initiative

Global innovation

Home to the first-ever certified green bonds from China, India, the Middle East and Chile.

Unrivalled experience

London Stock Exchange has led the way, helping define sustainability finance since 2015

Sustainable Bond Market Structure

Sustainable Bond Market

Issuer-level Classification

Bonds by issuers whose core business activity is aligned with the green economy. Eligibility determined by specific criteria set by London Stock Exchange

Certified Use of Proceeds

Independent External review:

Second opinion Third Party Verification aligned with ICMA Principles or other eligible standards.

Green Revenues

Projects that directly aim to address or migrate a specific social issue and / or seek to achieve positive social outcomes.

Sustainability-Linked Bonds

Forward-looking performance-based bond instruments where the issuer is committing to future improvements in sustainability outcomes within a predefined timeline, in accordance with relevant international standards.

Green

The proceeds will be exclusively applied to finance projects with clear environmental benefits.

Sustainability

The proceeds will be exclusively applied to finance a combination of both Green and Social Projects.

Social

The proceeds will be exclusively applied to finance in part or in full new and/or existing eligible Social Projects.

*Please refer to the SBM Factsheet for detailed technical information. www.lseg.com/sbm

Why you should list a green, sustainability or social bond

Green, sustainability or social bonds are one of the most visible initiatives in green finance. As bonds they are a well-established asset class with institutional investors. They have significant potential to transform the economy into one that is more environmentally and socially sustainable and offer numerous benefits to issuers.

1
Access a deep pool of capital
Green, sustainability or social bonds are an ideal way for business to tap into the huge $100 trillion pool of private capital managed by global institutional fixed-income investors.
2
Send a clear sustainable signal to the market
Issuing a green, sustainability or social bond provides a signal that your business has a meaningful sustainability strategy, has identified the material environmental risks and opportunities that the business faces and is investing to deliver on them.
3
Build a stronger sustainability dialogue
The extra disclosure required to issue a green, sustainability or social bond creates greater levels of dialogue between borrowers and lenders, improving your relationship with investors.
4
Motivate your people on sustainability
The process of issuing a green, sustainability or social bond can galvanize management and staff around the concept of sustainability and the role of the business in delivering a sustainable future.

How Issuers use green, sustainability or social bonds

A wide range of companies and organisations have issued green, sustainability or social bonds with London Stock Exchange, since it became the first major exchange to launch a dedicated green segment in 2015.

Yorkshire Water issues its first sustainability bond in London

Yorkshire Water’s £350 million 22-year bond was the 100th active green, social and sustainability bond on London Stock Exchange. The bond was the first sterling denominated sustainability bond, and the first sustainability bond by a UK corporate issuer listed on London Stock Exchange. Investors placed more than £1.9 billion of bids on the order book at its peak.

"This is the first step in our plans to progressively move our debt portfolio into the framework and shows Yorkshire Water's commitment to embed sustainability across all our operations," says Liz Barber, Director of Finance and Regulation, Yorkshire Water.

Fiji chooses London for landmark green bond issue

In 2018, Fiji became the first emerging market sovereign to list a green bond on London’s International Securities Market, raising capital that will support more than 80 domestic climate mitigation and adaptation projects.

Fiji has significant exposure to climate change, so this represents a vital investment in its future: proceeds will be used for projects in sustainable management of natural resources, renewable energy, water and energy efficiency, as well as clean and resilient transport and waste-water management.

Standard Chartered finances sustainable development

Standard Chartered Bank has issued its first sustainability bond in London, focused on emerging markets – covering least, low and lower-middle income countries in Asia and Africa. Proceeds from the bond will allow the bank to finance more projects aligned to the UN’s Sustainable Development Goals (SDGs).

"We see growing investor interest to finance sustainable development in Asia and Africa," says Daniel Hanna, Global Head of Sustainable Finance at Standard Chartered. "But this is often hampered by elevated risk perception and a lack of investable opportunities. Our sustainability bond gives investors access to emerging market sustainable finance with the comfort of investing in a well-governed UK-regulated bank."

Your Guide to Green Finance

Learn more about the green economy and sustainable finance opportunities in this helpful guide to 'Navigating the Green Finance Landscape'.

The guide explains the policy and market context of green finance – and how London’s issuers are using green finance tools to support their growth and the transition to a sustainable low-carbon economy. Access your copy now.

Download the guide

Contact us to learn more

To discuss your sustainable finance and green investment options in London, please complete the contact form.

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