London Stock Exchange launches dedicated green bond segments

The FINANCIAL — London Stock Exchange has launched a range of new segments on its fixed income markets dedicated to the issuance of green bonds.

The new segments provide issuers with a full suite of solutions to support green bond issuance, offering the choice of a range of listed markets and trading models, spanning both Regulated Market and MTF, for both retail and wholesale investors. Designed to meet the needs of all green bond issuers, trading models include continuous on-screen market maker quoting, end-of-day pricing or OTC-style trade reporting only, according to London Stock Exchange.

City of Gothenburg is the first issuer to use a new dedicated green bond segment on London Stock Exchange with its recent SEK 1.05 billion (C. £80 million) green bond issue. The organisation has also moved their existing green bonds into the same segment for trading. City of Gothenburg opened London’s markets to celebrate the listing of their latest green bond on the new green segments.

Gillian Walmsley, Head of Fixed Income, London Stock Exchange said:

“London Stock Exchange Group is a committed supporter of green financing and we see huge growth potential for the sector. Our comprehensive offering will improve access for issuers and transparency for investors and by providing dedicated green bond segments we are leading the development of London as a key international hub for Green Finance.”

Danijel Afolter, Portfolio Manager, City of Gothenburg said:

“City of Gothenburg is an active supporter of the development of green bonds and has been a pioneer in this space, issuing the first Nordic green bond and being the first city in the world to issue a green bond. As well as attracting new investors and increasing transparency, the City of Gothenburg undertakes extensive environmental work which forms a strong foundation for green bond issuance. We are very proud of our work in green finance and listing our green bonds on a dedicated green bond segment on London Stock Exchange was an easy and natural step to take.”