London Stock Exchange welcomes IRFC to celebrate its debut Green Bond

Indian Railway Finance Corporation (IRFC), a wholly owned company by the Government of India, issued a 10 year USD denominated Green Bond raising $500mn with a 3.835% annual yield.

The bond offering was able to garner support from high quality investors across Asia and Europe. The offering is Climate Bonds Initiative certified and listed on the London Stock Exchange (LSE) as well as the Singapore Stock Exchange. The proceeds will used to finance eligible Green Projects i.e. rolling stock which will only be used on electrified tracks.

IRFC is a Non-Banking Financial Company with Infrastructure Finance Company status. The company is under the administrative control of the Ministry of Railways and has been the sole financial institution to the Indian Railways since its inception. As the dedicated market borrowing arm of the Indian Railways, IRFC plays a critical role in the Indian Government’s economic development plans and policies. As of March 2017, the company had outstanding borrowings of USD 16.2bn and outstanding loans and lease receivables of USD 18.8bn.

Mr. S.K. Pattanayak, Managing Director, IRFC on the occasion of listing of its Green bond on LSE said:

“The IRFC team is thrilled to be welcomed to the London Stock Exchange today for the listing of its Green Bond. The funds raised will be used to finance Green Projects i.e. rolling stock which will only be used on electrified tracks. Through the listing of our bond on the LSE, we aim to reach out to a new investor base.”

The speech given by Mr. S.K. Pattanayak, Managing Director, IRFC 

Good Morning Ladies & Gentlemen,

It is a great honor to be here today to celebrate the listing of Indian Railway Finance Corporation’s Reg S Green Bond issuance. We successfully priced a $500mn ten year Reg S Green Bond at a fixed rate coupon of 3.835%; this is also the company’s debut Green Bond issuance.

Indian Railway Finance Corporation is a wholly owned Government of India enterprise under the administrative control of the Ministry of Railways. Since our inception in 1986, we have been the sole financial institution to the Ministry of Railways and are responsible for mobilizing funds from domestic as well as international capital markets for the Indian Railways. Given our status as the dedicated financing arm of the Indian Railways, we play a critical role in Government of India’s economic development plans and policies.

The LSE listing of our Green Bond is a significant milestone for IRFC and is aligned to our endeavor to reach out to new investors and diversify our funding sources. The funds raised through this bond issuance will be used to finance Green Projects i.e. rolling stock which will only be used on electrified tracks.

I would like to thank the numerous investors who have invested in the current issuance. We aim to be a frequent issuer in the offshore markets in the future and look forward to our continued interactions with them. I would also like to thank the IRFC, Barclays, HSBC, MUFG and Standard Chartered teams for their support in making this issuance a resounding success.

Thank you all.