11.30.2021

Nasdaq Lists First Social Structured Product

11.30.2021
Shanny Basar
Nasdaq Lists First Social Structured Product

Nasdaq announced that Crédit Agricole CIB has listed its first structured product under a Social Bond Framework on the Nasdaq’s Sustainable Debt Market. The listing marks the first Social Structured Product listed on Nasdaq’s markets. The instruments are arranged by Garantum, and based on Crédit Agricole’s Social Notes Framework.

“We are delighted to be the first bank to publicly issue equity-linked Social Notes on Nasdaq Stockholm,” said Blake Wright, Senior Country Officer for the Nordic Countries at Crédit Agricole CIB. “We are pleased to offer retail investors the access to a product which was previously only available to institutional investors. As a global leader in sustainable finance, this innovative structured product also allows investors to contribute to the financing of social projects which will make positive impact on society.”

Instruments listed on the Nasdaq Sustainable Debt Market need to meet the Nasdaq Sustainable Bond listing criteria, based on the Green & Social Bond Principles and the Sustainability Bond guidelines, for which the International Capital Market Association act as secretariat.

“Supporting capital raising for projects improving the quality of life is a core purpose of financial markets,” said Ann-Charlotte Eliasson, VP and Head of European Fixed Income Listings at Nasdaq. “We are happy to have worked with Crédit Agricole CIB, Lifewatch and Garantum to launch the first product under the social sustainability product category – and we hope it is the first of many more to come.”

Structured products combine two or more financial instruments into one single security, and offer customized exposure to otherwise hard-to-reach asset classes and subclasses. Returns of this product issued by Crédit Agricole CIB are based on the development of a basket of stocks. The structured product is arranged by Garantum and offer investors the benefits of partial capital protection, while giving exposure towards a selection of companies in the healthcare sector selected in cooperation with the Lifewatch foundation.

“In 2018, Garantum and Crédit Agricole CIB together launched the first structured product based on a green note at Nasdaq Stockholm. Three years later we are happy to once again, together with our partners and clients, break new ground in sustainable investing,” said Mats Eriksson, Structurer at Garantum. “We put a lot of emphasis in making the right product at the right time, and the ability to create an investment with social impact without lowering clients potential return is something that is rather unique of structured products.”

Source: Nasdaq

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