TreasurySpring partners with London bourse for short-term ESG-aligned funding

TreasurySpring announced that investment corporations can access short-term sustainable funding from its client base of 100+ cash rich investors via LSE’s Issuer Services platform.

TreasurySpring’s clients will soon be able to access, sustainable cash investment products from investment corporations, in addition to the 300+ products already available through TreasurySpring’s Fixed-Term Fund (FTF) platform. The partnership leverages TreasurySpring’s existing infrastructure and technology, with the London Stock Exchange providing an accreditation for sustainable issuers, based upon clear, transparent criteria.

Corporations will now have a digital route to seek to raise short-term (<1 year) sustainable borrowing that aligns with their broader Environmental Social Governance (ESG) objectives, diversifies their financing sources, and can reduce funding costs.

For TreasurySpring’s clients, the initiative offers a new opportunity for excess cash investment to contribute positively to a firm’s ESG agenda, without compromising on core goals of maintaining security, matching liquidity and earning a fair return.

To be considered a “Sustainable Issuer”, an issuer must meet at least one of the following criteria:

  • Have a Refinitiv ESG score of at least B+, meaning that it ranks in the top third of its peer group. ESG scores are provided by Refinitiv, an LSEG business.
  • Qualify for London Stock Exchange’s Green Economy Mark, i.e. issuers listed on its equity markets derive at least 50% of their revenues from green environmental products and services, as defined by FTSE Russell’s Green Revenues Classification System
  • Display its securities on the Sustainable Bond Market, with its published ESG framework aligning with:
    • the ICMA Green Bond Principles 2021,
    • the Social Bond Principles 2021, and/or
    • the Sustainability-Linked Bond Principles 2020.

“Our collaboration is built on a shared passion for finding a better way to deliver greater access, transparency and liquidity to markets in general and to short-term funding markets in particular, underscored by a strong commitment to the growth of sustainable finance,” said Kevin Cook, CEO and co-founder at TreasurySpring, in a statement.

“Integrating our unique technology and infrastructure with LSEG’s experience, data and frameworks, means we can build a simple, digital solution to a problem that the market has been grappling with for some time. Bridging the gap between significant investor demand for transparent, sustainable cash investment products and the ever-increasing desire for large corporations to align their funding to their firm’s ESG agenda enables us to deliver genuine innovation in sustainable finance,” said Henry Adams, chief product officer at TreasurySpring, in a statement.

“The London Stock Exchange is committed to supporting the expansion of sustainable finance through its equity and fixed income markets, and we look forward to extending this to the short-term debt markets through our Issuer Services platform,” said Darko Hajdukovic, head of Platforms and Product for Primary Markets at London Stock Exchange, in a statement.

Source

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