On Wednesday 13 July 2016, the Luxembourg Stock Exchange held a press conference to announce the listing of the first Green Bond on the Luxembourg Stock Exchange.

Luxembourg's Minister of Finance, Pierre Gramegna, said he was delighted to be present at the announcement of the first Green Bond by a Chinese bank, here in Luxembourg; the bond is being issued in multiple currencies (Euro, USD and RMB).

He said that the Luxembourg Stock Exchange is No.1 in Europe in listing Green Bonds and recently celebrated the listing of its 100th Green Bond (it now lists 110+ Green Bonds). Combatting climate change is a top priority and the COP21 event in Paris last November has shown us how to achieve our goals. This is also another example to the diversification of Luxembourg's economy.

He referred to the collaboration between the Luxembourg Stock Exchange and Chinese banks and referred to the Bank of China's first Schengen Bond here in Luxembourg, an offshore bond demominated in RMB, in 2014. He mentioned that six Chinese banks are located in Luxembourg and he expects more to follow. "Luxembourg plays an important role in the internationalisation of the Renmimbi" he stated and added that Luxembourg is has a very strong funds industry - today's news is the latest in a long story of collaboration between Luxembourg and China.

The Ambassador of the Republic of China, Mr HUANG, spoke and referred to the collaboration between Luxembourg and China.

The Bank of China has signalled its committment to green investment and social responsibility with the first Chinese financial institution's green bond on the European continent and the first multiple tranches issuance of green bonds ever listed in Luxembourg. In fact, four Green Bonds for a total of $2.8 billion were issued by the Bank of China today on the Luxembourg Stock Exchange, under a medium-term Note Programme, totalling $20 billion. Proceeds raised from the issuance of these green binds will be used to finance projects that will promote renewable energy, pollution prevention, clean transportation and sustainable water management; these investments will be made globally. The notes are due in 2019 (2) and 2021 (2), offering variable rate, 1.875%, 2.25% and 0.75% return.

Mme Zhou Lihong, CEO at Bank of China, said "Today we reached another milestone in Bank of China's issuance history... and successfully launched the "Green Schengen Bond" on 5 July 2016." She added "Despite the news about the Brexit and the turmoil left in the financial markets, Bank of China succeeded to launch the biggest international debt sale of its kind, proving once again its attractiveness to and high recognition from professional investors".

Julie Becker of the Luxembourg Stock Exchange said "we would like to welcome the Bank of China for its Green Bond entrance... It is a big, big, bis issue on the Luxembourg Stock Exchange". She added "The Luxembourg Stock Exchange is the natural home of green bonds... Promoting green bonds is a high priority for the Luxembourg Stock Exchange".

She talked about transparency and welcomed the continuation of the long-standing relationship with the Bank of China.

She also referred to the 2016 Stock Exchange Day to be held on 27 September will focus on Green Bonds and Sustainable Finance.

Photo by Geoff Thompson