2019 was a turning point for the capital markets where Walkers noted a wide variety of transactions embracing the "green factor". With 2019 green bond issuance estimated at excess US$225billion, and market sources projecting soaring demand for corporate environmental, social and governance (ESG) investment, we anticipate growth across green finance transactions in 2020, with some exciting and novel features expected.
Alongside the increased investor demand for green bonds, we've seen the development and promotion of green market segments on many international stock exchanges including Euronext Dublin, the Cayman Islands Stock Exchange (CSX), The International Stock Exchange (TISE) and Vienna MTF, for whom Walkers acts as a recognised listing agent. This advisory aims to provide clients with a flavour of our listing expertise alongside the options available when choosing to list Green Bonds.
Listing Green Bonds on a Recognised Stock Exchange
At Walkers we offer issuers a choice of market on which to list your securities with the added attraction of recognised green segments. The process for listing a Green Bond follows the standard listing process with the additional benefit of boosting the profile of your green bond through its admission to the green segment of an internationally recognised stock market. While there may be minor nuances between the processes applied by each exchange, the most common features to the green segments we offer are as follows:
Common Features of Green Segments:
- Open to all types of green investment, including bonds, funds and trading companies
- Open to issuers from any jurisdiction
- Green credentials must be verified by an appropriate third party to evidence a globally recognised standard
- Securities must first be admitted to the official list following which they will be eligible for entry to the green segment
- No additional listing fees charged for entry to, or ongoing presence on, green segments
Euronext Dublin: Euronext launched its Green Bonds segment in October 2019 bringing together green bonds listed across each of its markets, currently hosting 200+ bonds form 80+ issuers including sovereigns, financial institutions, energy producers, food companies etc. Click HERE for a link to Euronext's Green Bonds
TISE: TISE has established TISE GREEN as a market segment for green investments, including bonds, funds and trading companies, which enhance or protect the environment. TISE GREEN has recently listed four series of green bonds for an energy group involved in the production of solar energy. Click HERE to access further information on TISE GREEN
Vienna MTF: The Vienna Stock Exchange offers a Green and Social Bonds platform promoting sustainable and transparent capital markets. Click HERE for additional information
CSX: Recognising the commercial and environmental benefits of Clean Technology Companies ("CleanTech") and CSX's ability to provide an efficient gateway to capital markets, the CSX has devised special listing rules for this sector. Click HERE for further information
Walkers Experience: We've been pleased to act on some novel and exciting transactions including:
- We acted for ENEL in the issuance of a novel format of bond directly linked to its sustainable development goals (SDG-linked bonds), demonstrating ENEL's commitment to increasing its renewables base
- We acted on the first ever green Euro CMBS transaction, a French property which was awarded a BREEAM certificate
- On the CLO front we're seeing growing numbers of CLO funds adopting explicit ESG criteria to avoid investing in sectors such as gambling, tobacco, weapons and hazardous chemicals, demonstrating a heightened social and environmental awareness
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.