The Luxembourg Green Exchange, which launched in September last year to specialise in climate-related bond issuance, has created a section dedicated to social and sustainable bonds.
The exchange, which is operated by the Luxembourg Stock Exchange (LuxSE), said the global value of socially responsible investment products was $23 trillion and that “such a major paradigm shift can no longer be ignored”.
“Since the launch of LGX [Luxembourg Green Exchange], there’s been a push, from both the investors’ and issuers’ side, to expand the green bond market from simply a climate remit, to other aspects of socially responsible investment”, said Robert Scharfe, CEO of LuxSE.
Due to the flexibility offered by sustainable bonds allowing for a much broader range of projects than just ‘green’, these bonds are likely to produce a larger market, Scharfe said.
“Green bonds may be experiencing a record year of issuance, but the social and sustainable bond market will soon be booming,” he added.
There are currently ten securities displayed in the social and sustainable “window”, including an issuance by Bank Nederlandse Gemeenten, focusing on social housing.
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