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Exchange in Focus: LuxSE marks 10 years of IFC Green Bond issuances

In a virtual Ring the Bell ceremony, the Luxembourg Stock Exchange (LuxSE) and the International Finance Corporation (IFC) marked the 10th anniversary of IFC’s Green Bond Program. Over the past decade, IFC has issued in excess of USD 10.4 billion of Green Bonds, many of which are listed at LuxSE and displayed on the United Nations-awarded Luxembourg Green Exchange, the world’s leading platform for sustainable securities.

“In the ten years since IFC established its Green Bond Program, it has provided crucial financing for green projects in a number of developing countries and made a real and tangible difference for people and countries that need it the most. IFC has also greatly contributed to the growth of sustainable finance both as an active issuer and investor, and as importantly, through its successful educational programmes and its role in establishing a framework for green finance,” said Julie Becker, Deputy CEO of LuxSE and Founder of LGX.

A pioneer in green finance

A sister organisation of the World Bank, IFC is the largest global development institution that focuses exclusively on the private sector in emerging markets. It works with 2,000 businesses across the world as part of its mission to end extreme poverty and boost shared prosperity. With its Green Bond Program alone, IFC has supported more than 220 green and sustainable development projects in areas particularly vulnerable to the effects of climate change.

The relationship between IFC and LuxSE dates back to 1986 and given IFC’s pioneering role in green finance over the past decade and its commitment to accelerating sustainable growth in developing countries, the collaboration has grown particularly strong over the past years, reflecting LuxSE’s own efforts to unlock sustainable capital.

Up to date, a total of 24 Green and Social bonds issued by IFC, with a combined value of close to USD 6 billion, are listed on LuxSE and displayed on LGX. Out of this amount, USD 1.4 billion worth of Green and Social bonds were issued this year.

“Ten years into IFC’s Green Bond Program, we continue to pursue increased allocation of capital to projects that ameliorate climate change issues,” said IFC VP & Treasurer John Gandolfo. “Along with partners like the Luxembourg Stock Exchange, we promote heightened transparency in the green bond market. IFC’s long-standing partnership with Luxembourg Stock Exchange is based on the shared value of information access to investors and the wider market, a concept that is even more critical to the green bond market.”

IFC estimates that more than USD 20 trillion of green investment will be needed over the next decade in Emerging Markets alone to combat climate change and its consequences. Mobilising capital and facilitating sustainable investment will be crucial to achieving the objectives set out by the United Nations Sustainable Development Goals and the Paris Climate Agreement.

SSE and Green Finance

The SSE campaign to grow green finance includes both promoting green finance products as well as greening mainstream financial markets.

In alignment with the SSE’s Green Finance Action Plan, the SSE tracks a number of sustainability activities that can help stock exchanges to grow green finance in their market. This includes sustainability bond segments or ESG indices and mainstreaming green through the inclusion of ESG disclosure in listing rules. To know more check the SSE Stock Exchange Database.