Sustainable financing
Russian Railways places green and social bonds in accordance with best sustainable financing practices. Proceeds from such placements are used to fund projects that align with the Company’s Green Financing Framework, Framework for Financing Sustainable Development Projects, Social Financing Framework and the UN Sustainable Development Goals.
In 2021, Russian Railways used a new finance instrument for the transport industry – an international ESG loan linked to environmental KPIs. The loan amount is CHF 585 m over seven years. The interest rate was linked to the achievement of Russian Railways’ sustainability targets.
In March 2021, Russian Railways reaffirmed its leadership in the domestic ESG finance market as it became the first Russian issuer of green perpetual eurobonds. The deal value totalled CHF 250 m. In September 2021, Russian Railways placed another issue of green perpetual eurobonds worth CHF 200 m. Thus, the total volume of eurobonds issued in that series rose to CHF 450 m. This remains the only precedent of green perpetual bonds placed in the international market by a company from Russia and the CIS. The issue was arranged in accordance with the International Capital Markets Association's Green Bond Principles. Both issues were certified as meeting the Climate Bond Standard of the Climate Bonds Initiative (CBI). They secured refinancing of the costs incurred by green projects running under Russian Railways’ Green Financing Framework.
Lastochka is an electric high-speed passenger train used for both suburban and long-haul transportation. The purchase of Lastochka trains meets the criteria of a clean transportation project outlined by ICMA’s Green Bond Principles. As proven by the Company's indicative measurements of the environmental impact from Lastochka trains, rail passenger transport boasts a significant advantage over motor vehicles.