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Eurex to strengthen European green bond segment with new GC Pooling Green Bond Basket

Erschienen am:
29.04.2024
| Eurex

Eurex to strengthen European green bond segment with new GC Pooling Green Bond Basket

- The new GC Pooling Green Bond Basket allows standardized re-use of green bonds for secured funding.
- Offering will further strengthen the increasing market for green bonds in the European Economic Area (EEA).

On 29 April 2024, Eurex launched an additional Green Bond Basket in its GC Pooling segment. This will increase liquidity and efficiency in the European repo market for green bonds, thus strengthening the green bond segment. 

The new basket complements three other Green Bond Baskets that were already launched in the Special and GC Repo segments in 2020 and 2021.

The launch of the new GC Pooling Green Bond Basket allows clients to leverage EUR, USD, GBP, or CHF cash against a selection of 80 green bonds issued by sovereign, and supranational entities across seven countries within the European Economic Area. In turn, collateral received from the basket can be re-used for Eurex Clearing margin with Clearstream TriParty, leveraging the established GC Pooling market design to mitigate the risk of transaction failures.

High-quality rated bonds included in the basket

The bonds included in the basket are issued in the areas of renewable energy, sustainable waste management, preservation of biodiversity and/or sustainable land utilization and are classified as a Green Bond pursuant to the data provided by WM Datenservice. They are a subset of the established Eurex Repo GC Pooling ECB basket with a minimum rating of A-/A3. 

Carsten Hiller
Carsten Hiller, Head of Repo Sales Europe, at Eurex: “The new offering underpins Eurex’s ESG-related initiatives and showcases its strong efforts to support the development of a well-functioning holistic eco-system for green bonds. We believe that this basket will facilitate greater involvement from market participants, enabling them to efficiently manage collateral while promoting green initiatives.”

We kindly provide you with a printable photo of Carsten Hiller.