TfL goes for LSE green bond
The London Stock Exchange has welcomed the transfer of £400m of Transport for London (TfL) bonds to its new green bond segment. The money raised via the bonds will support the objectives of TfL’s corporate environmental framework, which includes reducing air pollution in the city, improving natural resource management and preparing for potential climate change effects.
The transfer is the latest listing on London Stock Exchange’s Green Bond Segments launched earlier this year (see here) to provide a dedicated venue for the fast growing number of issuer seeking to fund environmentally-focused projects and for green-mandated investors. In total more than £3.2bn of green bonds are listed on London Stock Exchange.
Indian and Chinese issuers have been at the forefront of green fundraising over recent months, with more than £700m raised by organisations from the two rapidly developing economies. In October, Agricultural Bank of China launched a $1 billion green bond issue – the first international green bond issue by a Chinese bank and in November, YES BANK, one of India’s largest lenders, announced $500m green bond fundraising in London. The Indian and Chinese governments have also signalled their intention to raise significant green finance via London to fund infrastructure and transport development projects.
Gillian Walmsley, Head of Fixed Income, London Stock Exchange noted, “Attracting high quality issuers such as Transport for London to our new green segments is a significant win for this important new market. We are a committed supporter of green financing and see huge growth potential for the sector. Our comprehensive offering improves access for issuers and transparency for investors. London is today the key international hub for Green Finance.”
Notable Green Bond issuers on London Stock Exchange now include:
• Unilever
• Agricultural Bank of China
• International Finance Corporation, World Bank
• Development Bank of Japan
• Shanks Group
• City of Gothenburg, Sweden
• Nordic Investment Bank

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