Russian Railways becomes first in Russian transport sector to attract international loan linked to environmental performance
Russian Railways has attracted an Environmental, Social, and Governance (ESG) loan from UniCredit Bank linked to the implementation of environmental Key Performance Indicators (KPIs).
The loan was for 585 million Swiss francs over 7 years. The interest rate is tied to the achievement of the sustainable development targets set by the Company’s Environmental Strategy until 2030, including the reduction of emissions into the atmosphere, water consumption and the share of production waste for disposal, and can be reduced if these goals are met.
Russian Railways is one of the largest ESG borrowers on the Russian market. In September 2020, it placed an issue of perpetual green bonds worth a record RUB 100 billion. The Company is the only corporate borrower representing Russia on the green Eurobond market.
Up to now, the Company has placed three issues of green Eurobonds denominated in euros and Swiss francs, as well as one issue of social Eurobonds in roubles.
The proceeds from the placement of the bonds are directed towards the Company's environmental and social projects.