The Luxembourg Stock Exchange (LuxSE) marked the listing of the European Commission's inaugural green bond with a "ring the bell" ceremony on Tuesday, in the presence of the European Commissioner for Budget and Administration, Johannes Hahn, and Luxembourg's Prime Minister Xavier Bettel.
The €12 billion NextGenerationEU bond is the world’s largest green bond issued to date. It is governed by Luxembourg law and displayed on the Luxembourg Green Exchange (LGX), LuxSE's award-winning platform for sustainable securities.
“With its recent green bond framework and this record-breaking green bond issuance, the European Commission is paving the way for a strong sustainable finance Capital Markets Union and accelerating the climate transition across Europe", stated Julie Becker, CEO of LuxSE. "The Luxembourg Stock Exchange has played an active part in supporting the development of a Sustainable Finance framework in Europe and it is an honour to serve as the listing venue for the European Commission’s inaugural green bond. This issuance is an important step towards the goal of making finance sustainable and inclusive, and this is an ambition we share".
European Commissioner Johannes Hahn added: “The first NextGenerationEU green bond is a strong start for the NextGenerationEU green bond programme which seeks to finance Europe’s green recovery from the coronavirus pandemic. Its record-breaking performance is a demonstration of the great support by the investment community towards the sustainable transition, and the growing interest towards Europe as an investment destination. To turn this into a lasting success, it is great to count on partners such as the Luxembourg Stock Exchange, Europe’s hub for sustainable finance, and I look forward to our continued cooperation".
The 15-year green bond was eleven times oversubscribed, with demands exceeding €135 billion. This marks the largest green bond orderbook ever in global capital markets.
The funds raised by the green bond will be used to finance green and sustainable investments in EU Member States, as outlined in their Recovery and Resilience Plans. Under the NextGenerationEU instrument, Member States are required to earmark at least 37% of their national Recovery and Resilience plans for climate-relevant investments and reforms, and report on their green investments to the European Commission.