BIL has implemented its Green Bond Framework with a clear commitment to support the growth of the sustainable finance market. The Bank will now be able to issue green bonds, guaranteeing investors their funds will be used for a sustainable purpose. Case in point, this is the first green bond framework guaranteeing the exclusive financing of energy-efficient real estate in Luxembourg. This will strengthen BIL’s sustainable strategy and have a positive impact on the local economy and communities.
Specifically, BIL will be able to issue public bonds and private placements. The net proceeds will be allocated exclusively to finance or refinance, in full or in part, new or existing loans and investments for existing or future green buildings. To be eligible, these must be located in Luxembourg, and demonstrate specific performances of energy efficiency, as defined in the framework. To design its Green Bond Framework, BIL worked in close collaboration with sustainability experts from the Luxembourg Stock Exchange, home to the Luxembourg Green Exchange (LGX), the world’s leading platform dedicated exclusively to sustainable finance and Natixis Corporate & Investment Banking, acting as structuring advisor.
Jérôme Nèble, BIL’s Head of Financial Markets said: “BIL’s new Green Bond Framework is a key element of our sustainable strategy. Issuing green bonds will help us have a direct impact on the transition to a low carbon economy. We are looking forward to working with investors and clients to finance energy-efficient building projects.”
The new Green Bond Framework is a key element of BIL’s environmental, social and governance (ESG) strategy. Since the definition and launch of this strategy in 2021, the Bank has made significant progress in developing responsible products and services that create value for its clients while contributing to a responsible economic transition and sustainable finance. Four of the funds of its BIL Invest range received the LuxFLAG ESG label for a period of one year. BIL has also become an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through a partnership between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).
Detailed information on Banque Internationale à Luxembourg Green Bond Framework is available on bil.com.