MUFG has acted as Lead Arranger for a leading European rail operator on one of the largest ever Green Loans not only in Italy, but also in the global transportation sector.
The €1.1bn syndicated loan is a milestone in green financing, having included characteristics documented in Italo's Green Finance Framework, which outlines the company's sustainability commitments, and the Sustainability Linked Loan Principles.
MUFG is a market leader in issuing, underwriting and arranging Green, Social, Sustainability and ESG loans and bonds, and aims to provide a cumulative total of 20 trillion yen in sustainable finance (including 8 trillion yen for environment) in 2019-2030 to help build a sustainable society and attain the SDGs through the provision of financial services to our clients.
This is MUFG's second transaction with Italo, which owns and operates a best-in-class environmentally friendly fleet of electric trains. The proceeds of the transaction will be used to re-finance Italo's €900m existing green investments and to further invest in its modern and efficient fleet.
Orlando Di Tursi, Head of Corporate Banking, Italy, said:
"This deal is ground-breaking for both Italy and the transportation sector, and we couldn't be prouder to have played a part.
"MUFG will continue to strive to gain valuable experience in sustainable financing which going forward can be utilised for companies such as Italo, which are leading by example with their commitment to environmental sustainability."
Gianbattista La Rocca, CEO of Italo, declared:
"With today's signature, we have completed the world's largest green loan in the transportation sector. We are very proud of it because today Italo is recognized as a global leader in sustainability.
"Added to this, an improvement of terms and conditions of our financial structure."
The additional banks involved in the financing of this project include Banca IMI (Intesa Sanpaolo Group), Natixis, UniCredit (acting as Global Coordinators, Bookrunners and Green Coordinators), Banco BPM, Banco Santander, BNL, ING Bank, Mediobanca and Société Générale (acting as Mandated Lead Arrangers); and BPER, CAIXA Bank, MUFG and NatWest (Lead Arrangers).