IRFC green bonds mop up $500 m on London bourse

KR Srivats New Delhi | Updated on January 09, 2018

Corporation will use the proceeds to finance infrastructure

Indian Railway Finance Corporation (IRFC) has raised $500 million via a green bond offering and listed these instruments on the London Stock Exchange.

The ten-year tenor green bonds carry an annual yield of 3.835 per cent and are listed at LSE’s new international securities market.

IRFC had received strong international investor support and the bond offering was subscribed over three times.

Sixth bond issue

IRFC will use the proceeds to finance or refinance infrastructure for dedicated freight railway lines and passenger transport.

This is the sixth green bond transaction on LSE by an Indian issuer and fourth on LSE's new international securities market. Green bond issues in London have mopped up over $3.2 billion in November alone.

Year-to-date this year, as many as 23 green bonds have been listed in London, raising $9.4 billion. This is against 14 green bond issues, which raised $5.7 billion in 2016.

In all 61 green bonds are listed on the LSE, and they have raised over $20 billion in seven currencies.

Nikhil Gandhi, CEO, London Stock Exchange Plc, said IRFC’s green bond listing is a significant milestone for India and IRFC, allowing the country to further tap a dynamic new international channel of finance for Indian infrastructure.

SK Pattanayak, MD, IRFC, Neeraj Kumar, CFO, and other senior officials opened the London Trading and listing celebrations of the IRFC’s green bonds.

Published on December 07, 2017

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