Russian Railways places additional issue of green perpetual Eurobonds for CHF 200 million
On 30 September 2021, Russian Railways successfully closed the order book for an additional issue of perpetual green bonds on the international capital market for 200 million Swiss francs.
This brings the total volume Eurobonds issued in this series to 450 million Swiss francs and remains the only example of perpetual green bonds on the international market from issuers in Russia and the CIS.
The additional issue was priced above par at 100.638%, which reduce the average yield to about 3 following the initial offering volume of CHF 250 million at 3.125% with the first call option in 2027.
The green bond format, which attracted additional investor demand, also contributed to the offer’s success.
It is worth noting that the main demand came from Swiss investors.
The issue was prepared in accordance with the Green Bond Principles of the International Capital Markets Association (ICMA). Both tranches were also certified under the Climate Bonds Standard of the Climate Bonds Initiative.
The proceeds from the placement will be used to finance and refinance the costs associated with the implementation of green projects included in the Concept of Green Financing developed at JSC Russian Railways in accordance with the Climate Bonds Standard and Certification Scheme of the Climate Bonds Initiative.