The history of LGX: Diving back to 5 years of growth
In this special series of articles, we look back at each year of milestones of the Luxembourg Green Exchange (LGX) from its creation in 2016 to its 5th anniversary celebration in September 2021.
Despite the ongoing health crisis, 2021 started as strongly as the previous year ended in terms of sustainable finance. In February 2021, LGX reasserted its position as the leading platform for sustainable securities by adding a new section dedicated to Climate-Aligned Issuers (CAI).
Featuring issuers of debt securities that are active in climate-aligned sectors – such as clean energy, low-carbon transport, and sustainable land use – but that may not have issued labelled bonds, the launch signalled LGX’s commitment to highlighting untapped investment opportunities in the broader sustainable investment universe, beyond labelled bonds.
The following month, the Luxembourg Stock Exchange (LuxSE) received the title of Exchange of the Year at Environmental Finance’s Bond Awards 2021. This award marked the fifth consecutive year LuxSE was recognised as the Exchange of the year, underlining the exchange’s consistency in promoting the sustainable finance agenda through its green platform.
In April, LuxSE welcomed the Kingdom of Thailand as a new issuer at the exchange and celebrated the listing and display on LGX of Thailand’s first sustainability bond. By bringing its sustainability bond to LuxSE and LGX, the Kingdom of Thailand became the first Thai issuer ever to display a security on LGX.
Yet another significant landmark came in May 2021, when LGX reached the 1,000 sustainable bonds mark, with the European Investment Bank (EIB)’s 10-year USD 1.5 billion Global Climate Awareness Bond. A pioneer in sustainability funding, EIB launched the world’s first green bond in 2007 and now has over 50 green and sustainability bonds displayed on LGX.
The 1,000 bonds landmark served as a significant testimony to LGX’s global reach and the exponential growth of the platform, as well as its direct contribution to the United Nations Sustainable Development Goals (UN SDGs) and the objectives of the Paris Agreement on climate change.
But the 1,000 bonds mark was not the only milestone to be celebrated by LGX in 2021, as 27 September marked five years since the creation of LGX, the world’s first and still leading platform dedicated to sustainable securities.
In a ceremony featuring inspiring speakers including Luxembourg Minister of Finance Pierre Gramegna, LuxSE CEO and Founder of LGX Julie Becker looked back on the five years of LGX, and the numerous achievements of the platform since its launch in 2016.
As of September 2021, LGX counts more than 1,060 sustainable debt securities from 200 issuers in more than 40 countries, and is recognised as the global reference venue for green, social, sustainability and sustainability-linked bonds. It encompasses issuers from a wide range of industries across the private and public sectors, that have raised close to EUR 550 billion for specific green and social projects and sustainable development across the world.
But this is merely the beginning of the exchange’s journey towards sustainable finance, and with COP 26 around the corner, climate change momentum is at an all-time-high. As highlighted by all speakers at the LGX five-year anniversary event, and in the very words of LGX founder Julie Becker, “our mission to transform finance is as strong and necessary as ever, and we will continue our work to accelerate the transition to a low-carbon and more inclusive economy.”
