EIB and FS Italiane: 500 million euro green bond to purchase more than 100 regional trains

Brussels – Improving the quality of rail services in Campania and Lazio through the purchase of new electric trains, helping to favor modal shift to rail and thus promote the development of sustainable mobility: these are the main objectives of the €500 million agreement signed today in Rome by the European Investment Bank (EIB) and Ferrovie dello Stato Italiane S.p.A. (FS).

In detail, the EIB has subscribed in private placement a green bond issued by FS for 500 million euros, which Trenitalia (lead company of the Passenger Hub of the FS Italian Group), will benefit from through an intercompany loan. The resources invested by the EIB will help finance the purchase of 102 new electric trains for regional transport, equipped with ERTMS technology, the most advanced railway signaling system in Europe, as well as equipped with the highest standards of accessibility, safety, and infotainment for travelers, a note explains. In addition, the new trains, which will be of two types (“POP,” high-capacity, and “ROCK,” medium-capacity) ensure a low environmental impact thanks to the adoption of energy-efficient technologies (such as naturally ventilated engines, light alloy bodies, LED lighting, sensors for optimal climate control, smart parking functionality, etc.) and are recyclable for more than 95 percent of their material.

The new electric trains, which will enter service by mid-2027, will be allocated to the provision of regional rail services in Campania and Lazio, according to the relevant Service Contracts.

“This operation, which will contribute to the modernization of the fleet of regional trains in Italy, further consolidates the already excellent partnership between the EIB and FS, which is key to promoting sustainable mobility and economic development in Italy. Green bonds are an excellent alternative to traditional financial products to support projects that contribute to the climate transition,” commented Gelsomina Vigliotti, EIB Vice-President. “Not many people know that it was the EIB itself that launched green bonds in 2007, and since then we have issued more than €69 billion worth of green bonds in 23 currencies.”

“The transaction signed by EIB further strengthens its trust and interest in FS, demonstrating the great work done in recent years by two key players in the development of our country,” said Marco Fossataro, Chief Financial Officer of FS.

Today’s agreement confirms the commitment of the EIB, as the European Union’s climate bank, and the FS Group to sustainable finance. Following the success of the previous transaction between EIB and FS finalized in December 2021, respectively, where the EIB underwrote the first green bond in its history, and in July 2022, today’s subscription brings to three the number of green bonds issued by FS and underwritten by the EU bank, totaling EUR 1.050 billion.

The issuance of the green bond signed today will take place under the medium- to long-term bond issuance program (EMTN Program) totaling 12 billion euros established by FS in 2013, and in compliance with the principles contained in the current Green Bond Framework (GBF), first published by FS in 2017 and updated in 2022, in accordance with the Green Bond Principles issued by ICMA.

The 2022 GBF update includes the decision to gradually align eligible FS green emission projects – on a best-effort basis – with the European Taxonomy and the GBF with the EU Green Bond Standard. These elements find favor and support from the Bank in promoting the implementation of European sustainable finance legislation.