Sustainability-Linked Bonds (SLBs) are gaining popularity since the International Capital Market Association (ICMA) released its Sustainability-Linked Bond Principles (SLBP), in June of this year. As a result, the Luxembourg Green Exchange (LGX) now welcomes SLBs - alongside Green, Social and Sustainability Bonds and Green, Social and ESG Funds - on its trading venue.
While Green or Sustainable Bonds are issued to finance qualifying Green or Sustainable projects, such as energy or real estate, SBLs can be used to finance the sustainable transition of any entity. Issuers of SLBs must commit to sustainability targets, within a set timeline, and provide strategic information on how they will achieve those. The financial or structural characteristics of each bond may vary depending on whether or not the objectives are met.
LafargeHolcim has chosen the Luxembourg Stock Exchange as the listing venue for its EUR 850 million Sustainability-Linked Bond. The SLB was listed this week and will reach maturity in 2031. Through this bond issuance, LafargeHolcim commits to substantial CO2 reduction targets by 2030.
For more information about SBLs, please visit the LGX dedicated webpage.