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The Indian Railway Finance Corporation's (IRFC) has issued a USD 500 million green bond with a yield of 3.835 per cent on Wednesday which is listed on the London Stock Exchange's new International Securities Market (ISM).
The ten year dated bond was more than three times oversubscribed and has received strong international investor support, the London Stock Exchange said.
IRFC will use the proceeds of the bond to finance or refinance infrastructure for dedicated freight railway lines and public passenger transport.
"Our debut green bond is a significant milestone for IRFC, supporting the company's ambitious infrastructure green projects, which includes procurement of rolling stocks electrifying rail tracks across India," SK Pattanayak, Managing Director, Indian Railway Finance Corporation (IRFC) present in London said.
Along with Pattanayak, Niraj Kumar, Director of Finance, IRFC and Dinesh K Patnaik, Deputy Indian HC to the UK joined Nikhil Rathi, CEO of London Stock Exchange plc, to open London trading and celebrate the green bond listing.
The green bond is certified by Climate Bonds Initiative which helps build robust and transparent assurance frameworks around green bond investment.
"The Indian Railways is the third state-backed entity to seek global exposure by issuing a certified green bond and listing in London. This IRFC green bond and the previous issuance from IREDA and PFC are a sign of the enormous market opportunities for international investors in green energy, transport and infrastructure to meet India's intertwined climate, energy and development goals," Sean Kidney, CEO of Climate Bonds Initiative, said.
In particular, we are honoured to support the financing of the Indian Railways, the heartbeat of the Indian economy," Nikhil Rathi, CEO, London Stock Exchange plc, said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)