Financial advisor TreasurySpring has partnered with the London Stock Exchange (LSEG) to offer short-term sustainable funding.
As part of the initiative, LSEG will provide accreditation to recognise sustainable issuers through the TreasurySpring’s Fixed-Term Fund (FTF) platform.
The FTF platform will utilise LSEG’s ESG data and methodology to identify companies that meet certain ESG metrics or are contributing to the green and sustainable economy through their business activity and funding frameworks.
TreasurySpring’s FTFs are financial products that offer exposure to debt from a single investment grade issuer, for a fixed term. FTFs can provide access to highly-rated financial institutions, sovereigns, supranationals or corporations.
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, says TreasurySpring.
To be considered a “sustainable issuer”, an issuer must have a Refinitiv ESG score of at least B+ (meaning that it ranks in the top third of its peer group).
Issuers must also qualify for London Stock Exchange’s Green Economy Mark(as defined by FTSE Russell’s Green Revenues Classification System) and display its securities on the Sustainable Bond Market.
All issuance vehicles on the TreasurySpring platform are regulated by the Jersey Financial Services Commission as alternative investment funds pursuant to the Alternative Investment Funds (Jersey) Regulations 2012.
Henry Adams, chief product officer at TreasurySpring, says: “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.”
Darko Hajdukovic, head of platforms and product, primary markets at LSEG comments: “As a market infrastructure provider, committed to encouraging innovation, we look forward to collaborating with TreasurySpring. 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.”
