Aiming to finance infrastructure for dedicated freight corridors and passenger transport, Indian Railway Finance Corporation (IRFC), the financing arm of the Indian Railways, on Wednesday listed its first green bond on the London Stock Exchange. The 10-year dated green bond raised $500 million with an annual yield of 3.835 percent as it listed on the London Stock Exchange (LSE)s new International Securities Market (ISM). The bond was more than three times oversubscribed as it received strong international investor support. IRFC raises financial resources for expansion and running through capital markets and other borrowings. “Our debut green bond is a significant milestone for IRFC, supporting the company’s ambitious infrastructure green projects which includes procurement of rolling stocks for electrifying rail tracks across India,” S K Pattanayak, the IRFC Managing Director, told PTI.
“Not only was the bond three times oversubscribed but today we have also achieved our aim, through London, to increase our investor base across the EMEA (Europe, the Middle East and Africa),” he added. The IRFC listing marks the sixth green bond transaction on LSE by an Indian issuer and fourth on the new ISM. PTI reported LSE saying that the latest bond listing demonstrates Prime Minister Narendra Modi’s 2015 commitment to funding India’s infrastructure and growth through the issuance of over 1 billion pound worth of Masala bonds. On the occasion of the listing, CEO of the London Stock Exchange plc Nikhil Rathi said, “Todays green bond listing is a significant milestone for India and the IRFC, allowing the country to further tap a dynamic new international channel of finance for Indian infrastructure.”
The London Stock Exchange (LSE) is a stock exchange located in the City of London, England. As of December 2014, the Exchange had a market capitalisation of $6.06 trillion (short scale), making it the third-largest stock exchange in the world by this measurement (the largest in Europe, ahead of Euronext). The Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to St Paul’s Cathedral in the City of London. The Exchange is part of the London Stock Exchange Group. London Stock Exchange is one of the world’s oldest stock exchanges and can trace its history back more than 300 years. London Stock Exchange Group was created in October 2007 when London Stock Exchange merged with Milan Stock Exchange, Borsa Italiana