EU launches world’s largest green bond issuance on the Luxembourg Stock Exchange

The European Commission issued a record-breaking $13.8 billion worth of green bonds to finance the green parts of its over $900 billion coronavirus recovery fund. The 15-year green bond was met with overwhelming response from investors and was 11 times oversubscribed, with final order book over $156 billion, making it the largest green bond order book ever in global capital markets. The green bond is governed by Luxembourg law and displayed on the Luxembourg Green Exchange (LGX).

The funds raised by the green bond will be used to finance green and sustainable investments in EU Member States. Under the NextGenerationEU, a temporary recovery instrument whose goal is to support Europe's recovery from the pandemic, Member States are required to earmark at least 37% of their national Recovery and Resilience plans for climate-relevant investments and reforms.

LGX is the world’s leading platform for sustainable securities currently encompassing more than 1,100 sustainable bonds raising EUR 570 billion for specific green and social projects and sustainable development across the world. 

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L-R: Frank Wagener, Chairman of LuxSE Board of Directors; Johannes Hahn, European Commissioner for Budget & Administration; Julie Becker, CEO of LuxSE; Xavier Bettel, Luxembourg's Prime Minister; Credit: LuxSE

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