Indian Railway Finance Corp raises $500 million green bonds; becomes first Central Public Sector Enterprise to list on exchanges

NSE IFSC Ltd. has listed Indian Railway Finance Corporation’s (IRFC) Green Bonds on its ESG platform. IRFC has raised USD 500 Million green bonds under the USD 7 Billion Global Medium-Term Note (GMTN) Programme. 

IFRC became the first Central Public Sector Enterprise (CPSE) to list its Green Bonds exclusively on IFSC Exchanges. The Green Bonds are priced tightly at 3.57 per cent on account of the superior credit quality of IRFC. This will mark IRFC’s first exclusive listing at GIFT IFSC based exchanges. 

Amitabh Banerjee, Chairman & Managing Director, IRFC, said: “IRFC Green Bonds 2022 shall help open new avenues of resource mobilization ensuring sustainable development impacting the lives of the masses using public transport. Further, IRFC Green Bonds 2022 shall help revolutionize the Indian credit market by opening it through the introduction of a new set of investors and products.”

According to the release, the funds will be utilized for green end uses as iterated in IRFC’s Green Framework for Green Debt Financing, which has been duly certified by Climate Bonds Initiative. This is the second green bond of IRFC to get listed on IFSC Exchanges.

Since the launch of the NSE IFSC Debt Securities Market (DSM), the platform has listed total aggregate Medium-Term Note (MTN) worth over USD 37 billion and listing of bonds more than USD 17.1 billion (including ~USD 1.75 billion Green and Sustainable Bonds).

NSE IFSC Ltd. launched Debt Securities Market for listing and trading of debt securities in multiple foreign currency bonds, green bonds, masala bonds, notes etc., on March 16, 2018. Debt Securities Market Platform provides an efficient international listing process to issuers with minimum turnaround time and investment opportunities for investors from across the world.

Mr. Injeti Srinivas, Chairman, IFSCA, said: “We are delighted to note that IRFC has chosen to list their green bonds of USD 500 million exclusively on the IFSC exchanges. IFSCA aims to develop IFSC as a gateway for mobilizing foreign capital towards green financing and sustainable financing in India. Towards this objective, IFSCA has already specified the regulatory framework for listing of ESG debt securities based on global standards. The exclusive listing by IRFC demonstrates the competitiveness of IFSC in providing international financial services. We would encourage Indian corporates, including other PSUs, to consider listing their foreign currency bonds on the IFSC exchanges.”

Mr. Ravi Varanasi, President, NSE Group, said: “We are thrilled to welcome IRFC’s first exclusive green bond listing on IFSC exchanges. This listing of Green offshore bonds by IRFC will be the trendsetter for other Central Public Enterprises and corporates. NSE IFSC is committed to contributing to a more sustainable financial system and in the transition towards a carbon-neutral future.”