Reported by: banking|Updated: November 20, 2020
State Bank of India has entered into a MoU with the Luxembourg Stock Exchange to create a mechanism for long term cooperation and promote ESG, or Environmental, Social and Corporate Governance and green finance. The MoU provides for the Luxembourg Stock Exchange to work towards creating a sustainable environment for issuers, asset managers, and investors in terms of ESG focused funds and bonds. Dinesh Khara, Chairman, SBI said the bank has adopted ‘Sustainability’ as one of its core values. A ‘Sustainability and Business Responsibility Policy’ for the Bank has been put in place and SBI was the first public sector bank in India to publish its Sustainability Report as per Global Reporting Initiative (GRI) framework. The bank has raised $800 million in the Green Bond Market to date and the MoU with the Luxembourg Stock Exchange will open up new avenues for market development and fundraising in the green bond market, he added.
The international arm of the Bombay Stock Exchange, India International Exchange (India INX) too has entered into a MoU with Luxembourg Stock Exchange for the development and promotion of ESG and green finance in the local market. In 2019, India INX unveiled its Green listing and trading platform. GSM Green serves as a platform for fundraising and trading green, social, and sustainable bonds exclusively. Luxembourg Stock Exchange is one of the largest and most popular destinations for listing Green and sustainable bonds by issuers across the world. India INX MD and CEO V.
Balasubramaniam said this MoU is very special to India INX as it believes it can provide the issuers and investors with an opportunity to list and trade green bonds on GSM Green with the opportunity to dual list with Luxembourg Stock Exchange. Robert Scharfe, CEO of, Luxembourg Stock Exchange, said a leading international exchange, it has a deep-routed ambition to build a closer relationships with Indian market participants, which is taking even stronger steps through today’s cooperation with India INX.