Lyxor Asset Management has announced the launch of the Lyxor Euro Government Green Bond ETF, the world’s first ETF tracking sovereign Eurozone green bonds.
The Lyxor Euro Government Green Bond UCITS ETF tracks the Solactive Euro Government Green Bond Index, representative of the performance of Investment Grade-rated Green Bonds issued by Eurozone countries. To be eligible for inclusion in the index, the bonds must be approved by the Climate Bonds Initiative and meet specific criteria pertaining, in particular, to their issue size (at least EUR 300 million outstanding amount), their issuer (governments of the Eurozone primarily), maturity (at least one year until maturity), ratings (only Investment Grade bonds are eligible) and denomination currency (EUR).
“Until today, a strong and diversified sovereign segment was the missing link in the green bond market. We’ve now reached a point where any investor can and should have a green bond strategy as part of a fixed income portfolio. This launch will help investors pursue their net zero carbon objectives by giving them more clarity on the use of proceeds of their investments, including in their core sovereign bond allocation”, commented François Millet, Head of ETF Strategy, ESG and Innovation at Lyxor Asset Management.