Raise debt capital for investments with clear benefits to the environment, social sustainability or both.
Our sustainable debt markets are designed to highlight sustainable investment opportunities to investors with a green, social or sustainable investment agenda. It is open to all types of issuers that are looking to issue securities that meet our listing criteria, which are based on the green and social bond principles as well as the sustainability – linked bond principles, for which the International Capital Markets Association (ICMA) acts as a secretariat.
How to list on the Nasdaq Sustainable Debt Market
Issuers applying to list on a sustainable bond market operated by Nasdaq will go through the same process as issuers seeking to list conventional securities. In addition, issuers will also need to supply information about the security’s (or securities program) alignment with our listing criteria (“Sustainable Bond Framework”’) and a third-party review. Lastly, issuers are expected to produce and publish annual reports regarding the projects or activities that the bond finances.
The complete listing process is about two weeks if you never issued a sustainable security with Nasdaq before and one day for any subsequent issues. Read more about the process or contact our listings team directly.
Eligible Sustainable Bond Types
The Nasdaq Sustainable Debt Market lists green, social and sustainability bonds as well as sustainability linked bonds. Use them to highlight and finance projects your organization undertake that will create a positive change for the community, the climate and environment or a combination of both. International standards define Sustainability Bonds as loans used to finance projects that bring clear environmental and socio-economic benefits. Green Bonds are defined as loans used to finance projects and activities that benefit the environment. Social Bonds are used to finance projects achieving positive socio-economic outcomes, with a neutral or positive impact on the environment. Whereas Sustainability-Linked Bonds can be used to finance general corporate purposes, its characteristics (e.g. coupon rates) depend on the issuers’ ability to meet a pre-defined set of sustainability performance targets.
If you are looking to raise capital for green, social or sustainable projects on Nasdaq, you need to meet the relevant sustainable debt markets’ listing criteria.
The listing criteria were developed in cooperation with Sustainalytics, a globally recognized authority in environmental, social and corporate governance research.
The main components in the listing criteria are Use of proceeds, Third party review and Reporting. Examples of eligible projects include but are not limited to:
- Renewable energy projects, including production, transmission, appliances and products.
- Energy efficiency, including investments in new and refurbished buildings, energy storage, district heating, smart grids etc.
- Biodiversity conservation, including protection of coastal, marine and watershed environments and green buildings which meet other relevant standards and requirements.
- Affordable basic infrastructure, including clean drinking water, sewers, sanitation and transport.
- Access to essential services, including health, education and vocational training, healthcare, financing and financial services.
- Affordable housing.
Securities that fail to meet the listing criteria will be excluded from our Sustainable debt markets and moved to the main market instead. The instruments will continue to be listed on the exchange but not included in the sustainable debt segments.
A security can be excluded from the sustainable debt markets if:
A. The security becomes incompliant with the use of proceeds criteria.
B. The issuer does not meet the reporting obligations.
C. The issuer is involved in a controversy that is directly related to the project or activities funded by the bond.
Stand Out to Investors Looking for Sustainable Investments
By listing your security at one of Nasdaq’s Sustainable debt Markets, you can attract investors specifically looking to invest in sustainable businesses or projects.
Credibility as a Sustainable Brand
Listing a sustainable security creates positive branding in a market where both investors and consumers are getting increasingly aware of the need for sustainability in both corporate operations as well as in communities.
Stamp of Quality
By listing on a sustainable debt market you show that you have undertaken to comply with the internationally accepted principles.