This article first appeared in the Railway-News magazine, Issue 1 2023.
Josephine Cordero Sapién, Railway-News: We hear a lot these days about decarbonising transport in order for governments to meet their net zero commitments. This also includes rail. For example, the UK government has put forward plans to end the use of diesel-only trains on the British rail network by 2040. Such a shift in policy obviously requires major investment by companies. This is where green loans come in. Could you say a little bit about what a green loan is and what specifically makes a loan a green loan?
Sabine Lehmann, KfW IPEX-Bank: Yes, of course, what makes a loan a green loan? That is indeed a crucial question. Mostly people think the loan should be for an investment in an asset or project defined as green following a specific definition, category or taxonomy.
The purpose of the financing is only one part. And what kind of project or asset can be defined is best described in Appendix 1 of the Green Loan Principles LMA/LSTA/ APLMA, which lists all eligible green categories. Speaking of the core elements of a green loan, the use of proceeds has to be clearly focused on the eligible green asset / project financed. Furthermore, the GLP describe that the borrower has to communicate to its lenders its environmental sustainability objectives and the process by which the borrower determines how its projects fit within the eligible categories. Core element three is that the proceeds of a green loan have to be credited to a dedicated account or tracked by the borrower in an appropriate manner and last but not least, the issue of reporting: borrowers have to keep readily available up to date information on the use of proceeds to be renewed annually until fully drawn.
Railway-News magazine Issue 3, September 2022: KfW IPEX-Bank – The Asia Pacific Rail Market: Current Dynamics and Investment Trends.
Railway-News magazine Issue 5, November 2021: KfW IPEX-Bank - The European Rail Freight Sector – An Outlook
Railway-News magazine Issue 4, September 2021: KfW IPEX-Bank - Indermodal Freight Transport: Market Potential & Challenges.
KfW IPEX-Bank recently aided the financing of Amber Infrastructure Group and DIF Capital Partners' acquisition of Rail First Asset Management.
Belgin Rudack has become one of five members of KfW IPEX-Bank’s Management Board, responsible for export and project finance within KfW Group.
KfW IPEX-Bank is providing 100 million Euros to Stadtwerke Frankfurt in order to finance new trams for the city of Frankfurt, Germany.
KfW IPEX-Bank is providing financing of EUR 70 million for the construction of a maintenance facility for the Hessian State Railway (HLB).
KfW IPEX-Bank and DAL have implemented an investment by NEB in seven hydrogen trains to run a local public rail service for Heidekrautbahn.
KfW IPEX-Bank is financing 40 new light rail vehicles to replace the oldest ones in the Stuttgarter Straßenbahnen AG (SSB) fleet.
KfW IPEX-Bank and Siemens Financial Services support transport transformation in Germany with another eight “green” locomotives for RIVE.
KfW IPEX-Bank, European Investment Bank (EIB) and NORD/LB are jointly financing the expansion of public transport in the Chemnitz region.
KfW IPEX-Bank is financing MFD Rail's investments in new freight cars. The funds will be used to finance up to 6,500 new intermodal railcars.
KfW is providing an estimated 440 million EUR to assist the Indian city of Surat with its energy-efficient metro system development.
KfW is supporting companies to invest in sustainable mobility with a broad range of promotional programmes.
EIB, KfW IPEX-Bank and NordLB finance new battery-powered regional trains to replace diesel in the surrounding area of Berlin.
KfW IPEX-Bank co-arranges financing of 50 new SmartHybrid and 53 existing modern shunting locomotives to be acquired by Nexrail.
Bayern LB, Helaba and KfW IPEX-Bank are co-financing the acquisition of 32 modern Coradia Continental electric multiple units for HLB.
KfW IPEX-Bank join the financing of Aves One AG, arranging a €75 million warehouse facility to expand their rail freight wagon portfolio.
KfW IPEX-Bank, ABN AMRO Bank, Crédit Agricole Corporate & Investment Bank and ING Bank are supporting Railpool's investments.
KfW IPEX-Bank supports the freight transport sector once again, financing new company Wascosa UK Ltd. to purchase freight wagons.
KfW IPEX-Bank is providing EUR 80 million towards the financing for new electric multiple units acquired by the passenger rail company ÖBB.
Use the form opposite to get in touch with KfW IPEX-Bank directly to discuss any requirements you might have.