Cyril Amarchand advises on IRFC's $500 mn Climate Bond

Mumbai: Cyril Amarchand Mangaldas advised the bankers in relation to the $500 million offshore fundraising by Indian Railway Finance Corporation Limited (IRFC) by way of foreign currency Climate Bonds, under its $7 billion Global Medium-Term Note Programme (MTN Programme). The Bankers to the transaction were BNP Paribas, DBS Bank Limited, The Hongkong, Shanghai Banking Corporation Limited, MUFG Securities Asia Limited, State Bank of India (London Branch) and Standard Chartered Bank.

The capital markets practice of Cyril Amarchand Mangaldas advised on the transaction. The capital markets team was led by Gokul Rajan, Partner with support from Ambuj Gupta, Associate and Chinar Gupta, Associate.As a part of the Transaction, IRFC raised $500 million by way of 3.75 per cent notes due 2032. IRFC had received a Climate Bonds certification from the Climate Bonds Initiative in respect of its Green Financing Framework. The drawdown by IRFC pursuant to the updated programme was made under the green financing framework, at IRFC's discretion.

This transaction makes IRFC the first Central Public Sector Enterprise (CPSE) to list its offshore bonds exclusively at Indian stock exchanges established in the gift city, Gandhinagar. IRFC will utilize the proceeds for financing eligible green assets through finance leasing model and refinancing the existing debt utilized for eligible green assets under the IRFC's green financing framework for freen debt (Green Financing Framework) in accordance with applicable law. The funds raised will help Indian Railways to meet its target of carbon neutrality and the wider target set by the government to meet the emission and carbon norms set in COP26.

Other parties and advisors to the transaction included Allen & Overy (Asia) pvt Ltd (acted as international legal counsel for the issuer), Linklaters Singapore Pte. Ltd. (acted as international legal advisors to the arrangers and dealers).