LCH RepoClear advances ESG goals with green bonds: The €GCPlus Green Basket

Rick Steves

“Together with the additional baskets launched through our existing offering, we continue to adapt our products so our members can benefit from further cross-margin netting opportunities across their special and triparty general collateral activity in addition to a wider choice of liquidity pools”.

LCH RepoClear SA, an entity within the London Stock Exchange Group (LSEG), has announced the launch of its first €GCPlus green basket, marking a significant development in its general collateral triparty offerings.

The green basket comprises Investment Grade bonds denominated in EUR. These bonds are allocated by Euroclear from a pool of eligible securities that align with issuer-reported green bond reference data, provided by Bloomberg.

The use of net proceeds from these bonds is expected to finance environmental and climate change mitigation projects, LCH stated.

Further cross-margin netting opportunities

This launch is a key step in expanding LCH SA’s €GCPlus product line, following the successful merger of its two clearing services in July 2023. This merger provided members with alternative access to the world’s largest Euro-cleared pool.

The offering includes a GovSSA basket, covering debts from Governments, Supranational entities, Subnational bodies, and Agencies in the Eurozone, and a basket of Italian Government bonds launched in December 2023, the first of its kind at a country level.

Olivier Nin, Interim Head of RepoClear and Collateral and Liquidity Management, LCH SA commented: “We are proud to support our members’ sustainability objectives with the launch of the €GCPlus green basket. Together with the additional baskets launched through our existing offering, we continue to adapt our products so our members can benefit from further cross-margin netting opportunities across their special and triparty general collateral activity in addition to a wider choice of liquidity pools”.

Olivier Grimonpont, Managing Director, Head of Product Management, Market Liquidity Euroclear said: “We are very pleased to have supported LCH RepoClear in their launch of a new green basket on €GCPlus. In our role as a Financial Market Infrastructure, we work with the market to help advance important innovative solutions that will support growth and stability.”

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