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Reorienting capital flows towards sustainable development
What started out as a platform dedicated solely to green bonds in 2016, LGX has now expanded to welcome a wide variety of issuers and securities onto our platform. From green, social and sustainability (GSS) bonds to sustainability-linked bonds and LGX funds, we are constantly evolving LGX to address sustainable finance market developments and unlock the vast amount of capital that we need to reach our global goals. Find out more about how to display a sustainable security below.
GSS bonds
Sustainability-linked bonds
LGX funds
Choose a market
Before a green, social or sustainability (GSS) bond can be considered for display on LGX, you must first list the bond on our EU-regulated market (Bourse de Luxembourg) or our exchange-regulated market (Euro MTF) or register the bond without admission to trading via our Securities Official List (LuxSE SOL) Find out more information on LuxSE’s markets and platforms here.
Classify your bond
Your bond must also be self-labelled as green, social or sustainability and this must be specified in the legal documentation. The bond’s use of proceeds should be allocated to green, social or sustainability projects as stated in the framework. Our eligibility criteria are in line with the International Capital Market Association (ICMA)’s Green Bond Principles (ICMA GBP), Social Bond Principles (ICMA SBP) and Sustainability Bond Guidelines (ICMA SBG).
Provide a pre-issuance external review
At the pre-issuance stage, we require you, as an issuer, to provide an external review (i.e., Second Party Opinion) of your framework or on your issuance. The external review must confirm alignment with recognised standards and principles.
Commitment to post-issuance reporting
At LGX, we require a commitment to produce a post-issuance allocation report and expect a new report once per year until the maturity of the bond or at least until the full allocation of proceeds. In addition, we encourage you to disclose on the environmental or social impact of your bond.
Bonds fulfilling the above criteria are automatically eligible to be displayed on LGX once properly evaluated by the LGX Team.
Bonds fulfilling the above criteria are automatically eligible to be displayed on LGX once properly evaluated by the LGX Team.
Choose a market
Before a sustainability-linked bond can be considered for display on LGX, you must first list the bond on our EU-regulated market (Bourse de Luxembourg) or our exchange-regulated market (Euro MTF) or register the bond without admission to trading via our Securities Official List (LuxSE SOL) Find out more information on LuxSE’s markets and platforms here.
Inclusion of sustainability-related targets
Your bond’s legal documentation must also clearly describe the ways in which your bond’s structural and/or financial characteristics are linked to the achievement of the Key Performance Indicators (KPI(s)) and Sustainability Performance Target (SPT(s)).
Provide a pre-issuance External Review
At the pre-issuance stage, we require that you provide an external review (i.e., Second Party Opinion) on your framework or on your issuance. This external review must confirm alignment with ICMA’s Sustainability-Linked Bond Principles (ICMA SLBP) as our eligibility criteria is in line with these principles.
Commitment to post-issuance reporting and verification
We also require a commitment from you, as the issuer, to produce a post-issuance report and expect new report once per year, or at least once prior to the trigger event.
SLB issuers on LGX must also commit to obtaining a post-issuance verification, ideally on a yearly basis, or at least once prior to the trigger event, in line with ICMA’s SLBP recommendations.
Finally, you must also provide appropriate post-issuance disclosure in case of any material change to the KPIs’ perimeter, methodology, or to the SPT calibration.
SLB issuers on LGX must also commit to obtaining a post-issuance verification, ideally on a yearly basis, or at least once prior to the trigger event, in line with ICMA’s SLBP recommendations.
Finally, you must also provide appropriate post-issuance disclosure in case of any material change to the KPIs’ perimeter, methodology, or to the SPT calibration.
Choose a market
To display your fund in the LGX fund section, the fund must first be listed on one of LuxSE’s internationally respected markets – the EU-regulated Bourse de Luxembourg (BdL) market or the exchange-regulated Euro MTF. As a third option, the fund can be registered on the Securities Official List (SOL).
Categorise your investment funds
Categorisation is based on the Sustainable Finance Disclosure Regulation (SFDR) and is made by the asset manager responsible for the fund:
- An article 8 fund under SFDR is a fund that promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
- An article 9 fund under SFDR is a fund that has sustainable investment as its objective.
Fulfil LGX eligibility criteria
Funds classified as Article 8 or 9 under the SFDR are automatically eligible to be displayed on LGX once properly evaluated by the LGX Team.
Provide transparency and disclosure
Funds displayed on LGX are expected to fully comply with the product-level reporting required by SFDR or equivalent to ensure continued transparency and commitment to sustainability. We reserve the right to withdraw a security from our platform if it does not abide by SFDR requirements.
Choose a market
To display your fund in the LGX fund section, the fund must first be listed on one of LuxSE’s internationally respected markets – the EU-regulated Bourse de Luxembourg (BdL) market or the exchange-regulated Euro MTF. As a third option, the fund can be registered on the Securities Official List (SOL).
Categorise your investment funds
Categorisation is based on the Sustainable Finance Disclosure Regulation (SFDR) and is made by the asset manager responsible for the fund:
- An article 8 fund under SFDR is a fund that promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
- An article 9 fund under SFDR is a fund that has sustainable investment as its objective.
Fulfil LGX eligibility criteria
Funds classified as Article 8 or 9 under the SFDR are automatically eligible to be displayed on LGX once properly evaluated by the LGX Team.
Provide transparency and disclosure
Funds displayed on LGX are expected to fully comply with the product-level reporting required by SFDR or equivalent to ensure continued transparency and commitment to sustainability. We reserve the right to withdraw a security from our platform if it does not abide by SFDR requirements.
Need help to start your issuance journey on the right foot?
Through the LGX Assistance Service, our team of sustainable finance experts can assist you all the way from pre- to post-issuance of your sustainable security, by providing you with peer comparisons, reviewing your sustainability disclosures such as frameworks, and guiding you through your post-issuance reporting process.
If you need more information
We are conscious that choosing the right listing venue and obtaining your listing in time is mission critical!
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