The funds raised will help Indian Railways to meet its target of carbon neutrality and the wider target set by the government to meet the emission and carbon norms set in COP26.
This Transaction makes IRFC the first Central Public Sector Enterprise (CPSE) to list its offshore bonds exclusively at Indian stock exchanges established in the GIFT City,
Mumbai/ Delhi:
State owned Indian Railway Finance Corporation Limited (IRFC) has raised $ 500 million by way of foreign currency Climate Bonds, under its $ 7 billion Global Medium-Term Note Programme (MTN Programme).
This Transaction makes IRFC the first Central Public Sector Enterprise (CPSE) to list its offshore bonds exclusively at Indian stock exchanges established in the GIFT City,Gandhinagar.
The Transaction was signed on 21st January 2022 and concluded on 24th January 2022.
As a part of the Transaction, IRFC raised USD 500 million by way of 3.75 per cent notes due 2032. IRFC had received a ‘Climate Bonds’ certification from the Climate Bonds Initiative in respect of its Green Financing Framework. The drawdown by IRFC pursuant to the updated Programme was made under the Green Financing Framework, at IRFC’s discretion.
IRFC will utilize the proceeds for financing eligible green assets through finance leasing model and refinancing the existing debt utilized for eligible green assets under the IRFC’s ‘Green Financing Framework for Green Debt’ (Green Financing Framework) in accordance with applicable law.
The funds raised will help Indian Railways to meet its target of carbon neutrality and the wider target set by the government to meet the emission and carbon norms set in COP26.
The bankers to the transaction were BNP Paribas, DBS Bank Limited, The Hongkong Shanghai Banking Corporation Limited; MUFG Securities Asia Limited; State Bank of India (London Branch), and Standard Chartered Bank.
The Capital Markets Practice of Cyril Amarchand Mangaldas advised on the Transaction. The Capital Markets team was led by Gokul Rajan, Partner; with support from Ambuj Gupta, Associate; and Chinar Gupta, Associate.
Other parties and advisors to the Transaction included Allen & Overy (Asia) Pte Ltd (acted as international legal counsel for the issuer); Linklaters Singapore Pte. Ltd. (acted as international legal advisors to the arrangers and dealers).