London Stock Exchange welcomed Yorkshire Water Finance plc’s first sustainability bond
The £350 million 22-year bond will be admitted to the Main Market on 18 April 2019. Investors placed more than £1.9 billion of bids on the order book at its peak, a testament to Yorkshire Water's comprehensive sustainability framework.
The bond is the first Sterling denominated sustainability bond, and the first sustainability bond by a UK corporate issuer listed on the London Stock Exchange. The bond also marks the 100th active green, social and sustainability bond on London Stock Exchange's green bond segment.
Green and sustainability bonds have raised £1.08 billion of capital on London Stock Exchange's dedicated green bond segment in 2019 (as of 15 April 2019). There has been significant growth in green bond issuance. 2018 was a record year with 36 new green bonds listed collectively raising over £6.1 billion, a 25% increase on 2017.
London Stock Exchange was the first major exchange to launch dedicated green bond segments creating strict admission criteria aligned with ICMA’s Green Bonds Principles. In total, £22.2 billion has been raised in 14 currencies from 38 issuers since launch of dedicated green segment in 2015.
Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, UK Primary Markets, London Stock Exchange:
"We congratulate Yorkshire Water on the successful listing of its first sustainability bond on London Stock Exchange’s dedicated Green Bond Segment. This milestone also represents the first time 100 active green bonds have been listed on this segment. London is one of the leading global centres for green finance welcoming companies from around the world. The growth of this market reflects the increasing demand for issuers and investors choosing to incorporate sustainable investment practices into their portfolios."
Liz Barber, Director of Finance and Regulation, Yorkshire Water:
"Investors have responded very positively to our sustainable finance framework and the success of this issue confirms that we've taken the right approach. This is the first step in our plans to progressively move our debt portfolio into the framework and shows Yorkshire Water's commitment to embed sustainability across all our operations."