L&G issues inaugural £500m green bond

Legal & General today announced the issuance of its inaugural £500 million green bond, structured under its Green Financing Framework and aligned to the ICMA Green Bond Principles. The framework, first referenced in the 2022 announcement, sets out the categories of projects that can be financed with the proceeds.

Eligible green projects under Legal & General's framework include investments in renewable energy, green buildings, clean transportation and other environmental solutions. The group’s 2022 Annual Report confirms that the framework was established to support the issuance of green bonds and other green financing instruments.

Proceeds raised under the Green Financing Framework are allocated to eligible green assets, including clean energy, green buildings and other low‑carbon investments. Legal & General reported that it continues to make environmentally and socially useful investments alongside its green financing activities.

As at FY 2022, Legal & General had invested £1.3 billion in clean energy and £8.3 billion in social infrastructure. The group links these allocations and its green bond framework to wider climate commitments, including portfolio decarbonisation targets.

Legal & General has committed to halve the carbon intensity of its investment portfolio by 2030 and to reach net zero carbon by 2050. No specific timetable for further green bond issuance beyond the inaugural £500 million transaction was set out.

--- Sources: https://www.legalandgeneralgroup.com/investors https://group.legalandgeneral.com/media/pi0pmcy1/l-g-2022-annual-report-and-accounts.pdf