Sustainable Finance News
Towards the end of 2019 London Stock Exchange launched the Green Economy Mark and Sustainable Bond Market. At the time we hosted our first Sustainable Finance Summit and launched our Guide to Green Finance. Whilst the outbreak of COVID-19 has had a huge impact on the economy and our day to day lives, we’ve seen continued interest and momentum across the green finance ecosystem and markets have been quick to adapt to current challenges. Below we share with you some of the highlights in sustainable finance at London Stock Exchange over the past year.
Green Economy Report
Last month we announced the 2020 list of Green Economy Mark issuers, which recognises London-listed companies and funds which derive 50%+ of total revenues from the global green economy. 86 issuers have been recognised with the Mark, including 8 new entrants this year. You can view the 2020 list here.
Our new report shines a spotlight on this important sector, exploring trends and developments in the green economy and presenting best in class examples of companies and funds with sustainability at their core. Download the report here.
To mark the launch, we hosted a webinar with industry experts, exploring the current trends and developments in green finance. Watch the playback here.
London Stock Exchange wins Stock Exchange of the Year
London Stock Exchange was named Stock Exchange of the Year in the Environmental Finance Sustainable Investment Awards 2020. The recognition comes after LSEG developed a comprehensive sustainable finance and investment programme which focused on driving best practice in disclosure, supporting new green-growth companies and funds, and enabling the transition to a sustainable, low carbon economy.
Sustainable Bond Market Advisory Group (SBMAG)
We established the SBMAG as a forum for market participants to provide input on London Stock Exchange’s Sustainable Bond Market and act as a consultative body on future developments. This initiative is part of our continued commitment to support companies and investors seeking to raise capital and manage risk associated with the transition to a low carbon economy.
Social and sustainability bonds play an important role in directing funding to countries, sectors and people across the world who are being heavily impacted by the pandemic. Since it began, over £45bn has been raised in London to diminish its impact by multilateral agencies and individual countries, including the UK.
To support issuers to unlock funding for critical projects needed to rebuild communities, we announced that admission fees for COVID-19 social and sustainability bonds would be waived until October.
African Development Bank Social Bond
Representing the second largest social bond to date listed in capital markets, The African Development Bank’s (AfDB) ‘Fight COVID-19’ social bond joined our Sustainable Bond Market (SBM) in April. The bond attracted orders of more than $4.6 billion from central banks and institutional investors and raised $3 billion. The proceeds will go towards alleviating the impact of COVID-19 on Africa’s economies and livelihood; enhancing access to essential services, supporting healthcare, employment, water, and sanitation.
International Finance Corporation (IFC)
IFC's $1 billion social bond finances access to essential services in emerging markets. Issued soon after IFC & World Bank’s announcement of a financing package to combat the economic impact of COVID-19, the bond demonstrates how capital markets continue to support businesses and deliver impact in challenging times.
Valued at £1.3 billion, energy infrastructure assets owner and manager Calisen successfully listed on London Stock Exchange in February. The company raised £328.8 million from its IPO on the main market, listing at 240p a share.
In recognition of Calisen’s sustainable business model and green revenues, it became the 79th company on London Stock Exchange to receive the Green Economy Mark and the first company to use the Green Economy Mark in its pre-IPO marketing.
We also welcomed energy services company eEnergy Group in January to AIM. The company raised £2 million from investors to fund plans to grow the business, both organically and through acquisition.
Octopus Renewables Infrastructure Trust
We continue to see strong performance from the Green Fund sector and late last year welcomed Octopus Renewables Infrastructure Trust plc (‘ORIT’), a new investment trust investing in renewable energy assets across Europe and Australia, with shares trading on the premium segment of the main market.
The IPO raised proceeds of £350 million, with demand significantly exceeding the original £250 million target, a strong demonstration of investor's appetite for sustainable investments.