IBEC invests in green bonds of Russian Railways
International Bank for Economic Co-operation takes part in a subscription to new "green" bonds of the Russian Railways. The yield on securities at the time of the placement is 7.25% per annum, which corresponds to a 1.65% premium to the yield on Russian federal loan bonds (OFZs).
This is the largest environmental bond placement on the Russian market. Great interest from investors allowed the issuer to increase the volume five times - from 20 to 100 billion rubles. The issue was recognized by the Expert RA rating agency as complying with the Green Bond Principles of the International Capital Market Association (ICMA) and the Russian national methodology developed under the supervision of VEB.RF. The funds raised will be used to finance environmental projects of Russian Railways.
“The environmental agenda is one of the important priorities in the new IBEC strategy, and therefore new Russian Railways bonds with the high quality of the issuer and the green focus of investments, have taken their place in the “development portfolio” of our Bank,” said Chairman of the IBEC Board Denis Ivanov.