Germany: The holding company for components production has announced that the eight-year bonds with a coupon rate of 3.25% have a volume of €500 mln.
As stated by Knorr-Bremse, the green bond proceeds will be allocated to the projects relating to eco-friendly transport technologies. The attracted funds can be used for developing of braking systems, compressors, ATO systems, climate control equipment, couplers, and other components that will contribute to zero direct carbon emission transportation. Among other eligible categories that can be financed by the proceeds, there are projects connected with renewable energy and energy efficiency in business activities, as well as construction of green buildings.
Green bonds and loans are financial instruments which are used to fund projects with positive environmental impacts. In Russia, Sinara-Transport Machines has utilised such a form of fund raising. Alstom has also been provided with green guarantees under the contracts. Transport operators tend to use these financial mechanisms to attract investments, as well. Last year, Hitachi Rail became the first company which reported on the social impact of its rolling stock to receive sustainable project financing.
