- Alpha Group News
- 17. January 2017
- Alpha Trains Press Releases | Alpha Trains
Alpha Trains concludes world’s first Green Private Placement in the rolling stock sector
Luxembourg, 17 January 2017 - Proceeds exclusively used to refinance debt associated with the acquisition of energy efficient and environmental friendly electric train sets.
Alpha Trains Group has tapped the US private placement market to successfully complete the world´s first Green Private Placement by a leasing company in the rolling stock sector. Alpha Trains raised €250m which has been exclusively used to refinance debt associated with the acquisition of 63 modern electric multiple unit train sets equipped with environmental friendly and energy efficient technology which reduces energy consumption within passenger transportation.
“We are proud to have obtained the Climate Bond certification for this private placement as the first company in the rolling stock sector worldwide, which is a milestone for both our financing, environmental and social responsibility strategies. This new source of capital widens our lender base and, by providing modern and energy efficient electric rolling stock, we contribute to the achievement of the European Union´s greenhouse gas reduction targets and support the sustainable development goals of creating safe and sustainable cities,” says Shaun Mills, CEO of Alpha Trains.
The US Green Private Placement was arranged by Crédit Agricole Corporate & Investment Bank (CACIB), ING Financial Markets LLC (ING) and UBS Investment Bank (UBS) as joint placement agents. CACIB and ING assisted Alpha Trains in developing its Green Private Placement framework aligned with the Green Bond Principles .
Alpha Trains has also gained Climate Bonds Initiative Certification under the Low Carbon Transport Criteria for the green refinancing. Verification was provided by Sustainalytics, a leading global provider of environmental, social and governance research and ratings.
“Clean transportation is recognised by the Green Bond Principles as an eligible green project category, offering clear environmental benefits. Alpha Trains’ Green Private Placement is transparent and provides clarity regarding use of proceeds and the outcomes of the investments. Sustainalytics views Alpha Trains’ Green Private Placement as credible and robust.”
“By issuing its first successful Green capital market transaction, Alpha Trains has become one of the most innovative private players in the rail market worldwide with best in class standards for Green Bond transactions. Transportation is a key sector to fight climate change and we hope the Alpha Trains Green Private Placement will be instrumental in the further development of green transportation investments and financing,” says Tanguy Claquin, Head of Sustainable Banking at CACIB.
“This is green finance leadership in rail transport from Alpha Trains. There is tremendous global potential for well-structured green financing products to assist fund new rail infrastructure and rolling stock. This new placement from Alpha Trains is an international demonstration to the rail sector of best practice and sustainable investment,“ said Sean Kidney CEO Climate Bonds Initiative.
Alpha Trains Europa GmbH
Head of Group Investment Funding