The Luxembourg Stock Exchange (LuxSE) celebrated today’s listing of Europe’s first sovereign sustainability bond issued by the Grand Duchy of Luxembourg, in the presence of Pierre Gramegna, Luxembourg Minister of Finance. The EUR 1.5 billion bond carries a AAA rating and is displayed on the Luxembourg Green Exchange (LGX).

“Our congratulations go to the Luxembourg Ministry of Finance for this innovative action. With this bond issuance, the Luxembourg Government demonstrates its commitment to sustainable finance and its leading role in the transition to a low-carbon and more inclusive economy. The Luxembourg Stock Exchange is proud to serve as the reference exchange for sustainable securities,” stated Robert Scharfe, CEO of LuxSE.

A Frontrunner in Europe

The sustainability bond was issued under the new Sustainability Bond Framework established by the Luxembourg Government earlier this month. The framework is the first Sustainability Bond Framework established by a European country and aligned with the highest international standards and best market practices in the field of sustainable finance. The framework enables the issuance of green, social, and sustainability bonds.

The sustainability bond listed on LuxSE today has a 12-year maturity, and the proceeds of the bond will finance and refinance social and environmental projects, such as the electric public transportation service Luxtram and the country’s second-largest hospital, Südspidol.