London – By partnering with the London Stock Exchange, TreasurySpring can now offer investment corporations a unique opportunity to access short-term sustainable funding from its fast-growing client base of 100+ cash rich investors.
Through the London Stock Exchange’s Issuer Services platform, TreasurySpring offers issuers a unique opportunity to access short-term sustainable funding from its fast-growing client base of 100+ investors. TreasurySpring’s clients will soon be able to access, sustainable cash investment products from investment corporations, in addition to the 300+ products already available through TreasurySpring’s Fixed-Term Fund (FTF) platform. The partnership leverages TreasurySpring’s existing infrastructure and technology, with the London Stock Exchange providing an accreditation for sustainable issuers, based upon clear, transparent criteria.
This collaboration builds upon TreasurySpring’s central belief of delivering ‘a better way’ for investment firms to raise short-term funding. Through the TreasurySpring platform, corporations will now have a simple, digital route to seek to raise short-term (<1 year) sustainable borrowing that aligns with their broader Environmental Social Governance (ESG) objectives, diversifies their financing sources, and can reduce funding costs.
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.
The London Stock Exchange continues to further its vision of serving customers across the funding continuum, encouraging innovation and reaffirming its commitment to supporting the growth of sustainable finance.
The London Stock Exchange’s Issuer Services platform offers issuers access to the TreasurySpring platform through its Digital Treasury solutions, unlocking opportunities to manage their funding needs in an innovative and sustainable way.
- Sign a simple, short-form unsecured facility agreement via the TreasurySpring platform.
- Specify the desired amount, term, currency and rate of financing.
- Go live on the TreasurySpring platform, enabling investors to view the offering.
- Receive funds when interested investors subscribe.
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.
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.
The London Stock Exchange will provide an accreditation to recognise sustainable issuers through the TreasurySpring platform. This 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.
To be considered a “Sustainable Issuer”, an issuer must meet at least one of the following criteria:
- Have a Refinitiv ESG score of at least B+, meaning that it ranks in the top third of its peer group. ESG scores are provided by Refinitiv, an LSEG business.
- Qualify for London Stock Exchange’s Green Economy Mark, i.e. issuers listed on its equity markets derive at least 50% of their revenues from green environmental products and services, as defined by FTSE Russell’s Green Revenues Classification System
- Display its securities on the Sustainable Bond Market, with its published ESG framework aligning with:
- the ICMA Green Bond Principles 2021,
- the Social Bond Principles 2021, and/or
- the Sustainability-Linked Bond Principles 2020.
Each of the above requires a firm to have implemented a sustainability strategy at issuer level.
“We are thrilled to be entering into this exciting partnership with the London Stock Exchange. Our collaboration is built on a shared passion for finding a better way to deliver greater access, transparency and liquidity to markets in general and to short-term funding markets in particular, underscored by a strong commitment to the growth of sustainable finance.” said Kevin Cook, CEO and Co-founder, TreasurySpring
“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.” said Henry Adams, CPO, TreasurySpring
“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.” said Darko Hajdukovic, Head of Platforms and Product, Primary Markets, London Stock Exchange