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VTG: Green bonds successfully launched on the market

VTG: Green bonds successfully launched on the market
photo: Archives/Railway
03 / 11 / 2020

The VTG has placed € 746 million worth bonds on the capital markets of Europe and the US with great success. This was due to capital restructuring while "climate bonds" were issued. This process is part of a long-term plan to financially consolidate VTG’s debt capital structure reaching a € 2.9 billion transaction in May.

At that time, it was a matter of refinancing the capital structure, within which new financing agreements were signed with a banking consortium of many world banks. The KfW IPEX-Bank led this consortium as a facility agent and bookrunner. It contributed significantly to the refinancing of 2.9 billion euros.

VTG's main field is leasing rail of cars and organizing transports. Freight Rail transport significantly contributes to CO2 reduction compared to other modes of transport. This is the first "green private placement" in the history of VTG, which has been certified by the Climate Bonds Initiative as sustainable.

The bonds have maturities of 12, 15 and 20 years. Therefore, they can ensure long-term planning security. The coupon rates of below 2 percent. The American company Standard & Poor's gave them a BBB rating. This means that they have a stable outlook. According to VTG's financial management, this is a clear sign that VTG bonds are attractive to investors.