International banks fund Indian Railways’ carbon neutrality programme
Mumbai-headquartered Cyril Amarchand Mangaldas has advised international bankers in relation to the US$500 million foreign current Climate Bonds being offered by Indian Railway Finance Corporation Limited (IRFC) under its US$7 billion Global Medium-Term Note Programme (MTN Programme).
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, said the consultancy on 23 Feb 2022.
As a part of the Transaction, IRFC raised US$500 million by way of 3.75% 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.
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.
Other Parties and Advisors to the transaction included Allen & Overy (Asia) Pte Ltd and Linklaters Singapore Pte Ltd (acted as international legal advisors to the arrangers and dealers).
The transaction was signed on 21 Jan 2022 and concluded on 24 January 2022. fiinews.com
