Certification

The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds, loans & other debt instruments. Rigorous scientific criteria ensure that it is consistent with the goals of the Paris Climate Agreement to limit warming to under 2 degrees. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.

 

Rumo

Source: Rumo website

 

Rumo is an operator and owner of freight railway lines, freight trains, and related infrastructure in south Brazil. It owns 13,500 km of railway lines, 1000 locomotives and 2800 wagons. It is the largest such company in Brazil.

In recent years, it has been investing in its network to improve the fuel economy of its operations and its resulting emissions.  

The proceeds will be used to finance the purchase of new locomotives and rolling stock. Bond proceeds will also be allocated to upgrading the related infrastructure to support these trains and the associated railway lines.

 

One of the ways it is reducing the energy consumption of its trains is by using this "Trip Optizimer" automation technology from GE.

 

DATE OF ISSUE

TENOR TYPE OF INSTRUMENT

SIZE

COUNTRY OF ISSUER

CLIMATE BONDS SECTOR CRITERIA

VERIFIER'S REPORT

ANNUAL REPORT FURTHER INFORMATION
July 2020 8 years Senior Unsecured Notes USD 500 million Brazil

Low Carbon Transport

pre issuance verification

 

Rumo Green Bond Website

Rumo press release

Green Bond Framework