Certification

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

 

 

Indian Railway Finance Corporation

Indian Railway Finance Corporation Limited (IRFC) issued their first Climate Bonds Certified Bond in early December, 2017. The bond raised USD500 million from investors in Asia, Europe, the Middle East and offshore US. The proceeds of the bond will be used to finance eligible Green Projects under Dedicated Freight Railway Lines and Public Passenger Transport. 

IRFC believes railways have a massive role to play in the fight against climate change. For this purpose, IRFC aims to increase the share of railways in the overall land-based freight transport from the current 36% in 2016/17 to 45% by 2030. The company considers the issuance of Green Bonds as an ideal tool to facilitate the transition towards a more sutainable transport infrastructure. 

 

Introduction

Indian Railway Finance

Corporation Ltd. (IRFC) is the dedicated financing arm of the Indian Railway under

the Ministry of Railways (MoR), Government of India and mobilizes funds on behalf on Indian Railways

from domestic as well as overseas capital markets. The funds are utilize

d to support the procurement of

new rolling stock assets, which are locomotives, passenger coaches and wagons and also building up

infrastructure, constituting a significant part of Indian Railways annual capital expenditure

1

.

The Company has been able to

diversify its borrowing portfolio each year through the issue of both taxable

and tax

-

free bonds, term loan from banks / financial institutions besides off shore borrowings, at competitive

market rate.

The Indian Railways have a huge role to play in comb

ating climate change wherein it aims to enhance the

share of the railways in the overall land based freight transport from the present 36% in the FY 2016

-

17 to

45% by the year 2030.

2

DATE OF ISSUE  TYPE OF INSTRUMENT SIZE COUNTRY OF ISSUE CLIMATE BONDS SECTOR CRITERIA VERIFIER'S REPORT ANNUAL REPORT FURTHER INFORMATION
 December 2017 Use of proceeds bond  USD 500m India Low Carbon Transport  

pre issuance report by KPMG India 

post issuance report 

Annual report published on IRFC Website

First Annual Report, March 2018

Press Release

Green Bond Framework