The Swiss Stock Exchange has been a trading venue for Green Bonds since 2014 when the European Investment Bank (EIB) listed the first Green Bond, Raiffeisen followed with the first listed Sustainability Bond in 2019. In total, 39 Green and Sustainability Bonds with a nominal volume equivalent to around CHF 14.7 billion in various currencies such as CHF, EUR, USD, CAD, AUD and NZD are currently traded on the Swiss Stock Exchange. They are aligned with the Green Bond Principles and Sustainability Bond Guidelines by the International Capital Market Association (ICMA), according to which the proceeds are exclusively applied to eligible environmental and/or social projects.
In June 2020, ICMA has published the Sustainability-linked Bond Principles to further develop the key role that debt markets can play to fund companies committed to sustainability. Sustainability-linked Bonds are forward-looking performance-based instruments where the issuer commits to achieve predefined Sustainability/ESG objectives within a given timeline, while the proceeds are intended to be used for general purposes. Novartis was the first issuer to list a Sustainability-linked Bond at the Swiss Stock Exchange.
To help strengthening sustainable investing, to give sustainable bonds higher visibility and to facilitate investors’ search, a special flag has been introduced in the Bond Explorer that allows to filter either for Green, Sustainability or Sustainability-linked Bonds.