Shanks issues first retail offering on ‘green market’
International energy-from-waste (EfW) company Shanks Group PLC (LSE: SKS) opened yesterday’s (13 July) trading at the London Stock Exchange (LSE) in celebration of it becoming the first company to list a retail offering on London Stock Exchange’s ‘green market’.
Shanks’ Green Bond, which offers investors assurance that their investments will go towards ‘environmentally-beneficial purposes’, became the first retail offering on LSE’s ‘green market’, the section of the main market that supports the development of environmental projects.
This listing follows Shanks’ first Green Bond issue to retail investors in Belgium and Luxembourg on 26 May, which – by 16 June – had raised approximately €100 million (£71 million). The bonds, which have the same regulatory status as other ‘non-green’ bonds but come with documentation that certifies the nature of the bonds, are available in denominations of €1,000 (£710).
According to LSE, the issuance of Green Bonds will increase business transparency for investors and help make London a ‘key international hub for green finance’.
Yesterday’s opening ceremony was attended by a range of Shanks’ employees and advisors, including Shanks Chairman Adrian Auer, Group Chief Executive Peter Dilnot, and Group Finance Director Toby Woolrych. Green Bond issuing banks BNP Paribas Fortis and KBC Bank also had representatives in attendance.
'Supporting our commitment to sustainability and responsible green investment'
Commenting after the ceremony yesterday, Dilnot, said: “[W]e are delighted to open trading today to mark the listing of our Green Bond on the London Stock Exchange.
“Green Bonds not only align with our vision to be the most respected waste-to-product company, but also support our commitment to sustainability and responsible green investment.”
It is hoped that the Green Bonds will bolster Shanks’ finances compared to last year's profits.
Whilst the LSE’s Green Bonds initiative has gathered a significant level of interest, Motoko Aizawa, a senior fellow with the Climate Bonds Initiative has urged caution on their purchase, due to the lack of legal definition surrounding international Green Bonds and the fact that there accreditation is not formed under a common legal basis.
Shanks have been listed on the London Stock Exchange since 1988.