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Luxembourg Green Exchange: The World's Leading Platform For Sustainable Finance
Luxembourg Green Exchange: The World's Leading Platform For Sustainable Finance
Green Exchange
The world’s leading platform
for sustainable finance
Bringing green
issuers and investors
together
Launched in 2016, the Luxembourg Green
Exchange (LGX) is the largest platform exclusively
dedicated to sustainable finance.
By displaying their securities on LGX, issuers
generate awareness about their projects and
investment portfolios.
The platform also caters for sustainable
and responsible investors by providing full
and unrestricted access to a comprehensive
online database of information on sustainable
instruments.
LGX caters to asset managers, issuers and investors by providing a July 2016: Biggest green bond by a Chinese
clear and transparent framework for sustainable finance. issuer in the Eurozone, listed in three
currencies
» Asset managers and issuers benefit from:
September 2016: Luxembourg Green
— Higher visibility for their additional disclosure efforts
Exchange (LGX) launched
— An enhanced sustainable profile
December 2016: The world’s first sovereign
— Free uploads of sustainability documentation green bond displayed on LGX
— Promotion of their sustainable finance strategy March 2017: LuxSE recognised by CBI for
Green bonds
When the proceeds from an instrument are used exclusively to finance or refinance green projects, the bond will
be displayed in the green window.
We recognise several broad categories of eligibility for green projects that align with ICMA’s Green Bond
Principles and/or CBI’s Climate Bonds Standard:
All bonds displayed on LGX are available to international investors and open to trade on their respective
domestic markets in China.
Social bonds
When the proceeds from an instrument are used exclusively to finance or refinance social projects, the bond will
be displayed in the social window.
We recognise several broad categories of eligibility for social projects that align with ICMA’s Social Bond Principles:
Sustainability bonds
When the proceeds from an instrument are used exclusively to finance or refinance a combination of both green
and social projects, the bond will be displayed in the sustainable window.
The categories of eligibility for sustainability bonds are a blend of green and social projects, aligned with ICMA’s
Sustainablity Bond Guidelines.
Funds on LGX
As investments are increasingly channelled towards the Sustainable
Development Goals (SDG) and meeting international climate change
commitments, the need for reliable and transparent information on
investment products and opportunities also grows. This is why we have
introduced windows dedicated to responsible investment funds which have
been awarded a reputable sustainability label.
ESG funds
An ESG fund incorporates environmental, social and governance (ESG) factors into its investment
decisions and processes, following specific investment selection strategies. Asset managers
may implement different investment strategies, which include one or more of the following:
Green funds
A green fund invests its assets in sectors and activities that benefit the environment,
incorporating specific investment themes into its investment decisions and processes such as:
» Carbon
In addition to the focus on environment-related sectors, asset managers may implement one or
more of the investment strategies referred to above.
Social funds
A social fund invests its assets in sectors and activities that have social benefits, incorporating
specific investment themes into its investment decisions and processes such as:
» Social impact
» Microfinance
In addition to the focus on social-related sectors, asset managers may implement one or more of
the investment strategies referred to above.
How to join LGX
1
Listing / Registration
Joining LGX begins with a registration on the Securities Official
List (SOL) or by listing your financial instrument on one of the two
markets operated by LuxSE: either the regulated market (BdL) or
the exchange-regulated market (Euro MTF).
2
Classification
Classify your sustainable financial instrument as green, social,
sustainable or ESG.
3
Transparency and disclosure
All applicants shall disclose detailed information about the use of
proceeds (for bonds), or the investment policy and strategy (for
funds). Mandatory documents, such as external reviews and exclusion
policies will be published on the LGX platform.
4
Commitment to ongoing reporting
All financial instruments admitted to display on LGX will require
a declaration of commitment to transparency and on-going use
of proceeds reporting/impact reporting (for bonds) or responsible
investing reporting (for funds). LGX encourages simple and relevant
impact reporting.
Luxembourg Stock Exchange
Founded in 1928, LuxSE is the worldwide leader in the listing of international securities.
With its first mover attitude, over the last 50 years LuxSE has actively contributed to
the development of international capital markets.
LuxSE has a strong culture of servicing international clients and addressing their specific
A leading listing venue for needs. Thanks to its stringent but business-friendly admission process, LuxSE provides
international securities, the highest transparency to investors.
worldwide
By providing increased visibility to issuers, LuxSE is the gateway to access international
investors. Issuers on LuxSE benefit from the country’s vibrant and integrated financial
ecosystem and proximity to a powerful network of international experts (e.g. law firms,
banks, consulting firms, etc.).
“Listed in
Luxembourg“ A full-service offer
a recognised label in international
capital markets
Listing
Effective answer to market needs
50+ » Efficient listing process (prospectus comments in less than three business days)
» Indirect or direct prospectus submission
years of experience in listing
» Wide range of securities and currencies
international bonds
» Competitive fee structure
» Three listing possibilities: BdL Market, Euro MTF and Securities Official List (SOL)
99%
of all securities listed Trading
in less than 2 days
Top-notch trading platform
All securities listed on BdL Market or Euro MTF are systematically admitted to trading
10,400+
new listings in 2019 Information services
Comprehensive service that meets transparency and regulatory requirements
300+ » LuxSE website: easy access to centralised information
currencies
Sustainable finance
117 The Luxembourg Green Exchange is the first and only platform exclusively
Sovereign and quasi-sovereign dedicated to sustainable securities
issuers listed on LuxSE » Relevant sustainable information on one single platform