London Stock Exchange welcomes Transport for London green bond

  • Transport for London transfers its recent £400m bond issue to new London Stock Exchange green bond segments
  • Money raised will support TfL’s environmental initiatives
  • Commissioner Mike Brown opens London Stock Exchange trading
  • £3.2bn of green bonds now listed on London Stock Exchange

London Stock Exchange today 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 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.

The Mayor of London, Boris Johnson MP, said:
"This Green Bond will enable Transport for London to plough more money into much needed projects including station improvements to improve energy efficiency and new low emission buses. It's just another example of my commitment to investing in more sustainable and environmentally friendly transport and making London a cleaner, greener world city."

Gillian Walmsley, Head of Fixed Income, London Stock Exchange said:
“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.”

Mike Brown MVO, London’s Transport Commissioner, said:
"
At TfL, our purpose is to keep London working, growing, and make it a better place to live by providing safe, reliable and sustainable transport. Through our Green Bond, we have demonstrated our continuing commitment to sustainable transport, as shown by the environmental benefits of a number of our key projects and schemes.”

Notable Green Bond issuers on London Stock Exchange 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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Tom Gilbert

+44 (0)20 7797 1222
newsroom@lseg.com

Notes to editors:

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