Trinity Industries Leasing Co. (TILC) has developed and published a new framework that will allow it “to issue green financing instruments, including green non-recourse ABS bonds and green loans, supported by green eligible assets,” the company reported Jan. 25.
TILC said its Green Financing Framework (download below) is backed by a “second-party opinion” from Sustainalytics, a Morningstar Company, which provides ESG (Environmental, Social and Governance) research, ratings and data. Eight of its outstanding debt financings, which represent more than $4 billion of railcar-related debt, “meet the criteria and qualify for the Green Financing designation,” TILC said.
The railcar lessor said it will manage and report on eligible projects and assets, in line with the Green Bond Principles, 2018, as well as Green Loan Principles, 2020. Crédit Agricole CIB, which served as a “Green Structuring Advisor” for Trinity, will continue to work with the company on its sustainable finance efforts.
“TILC has been a pioneer in developing the railcar asset-backed securitization market since 2001, and we are pleased to, once again, be leading the charge for the North American railcar industry as the first railcar lessor to publish a Green Financing Framework for railcar assets,” Executive Vice President and Chief Financial Officer Eric Marchetto said.
Added Trinity Industries CEO and President Jean Savage: “TILC’s Green Financing Framework is an important step to contributing to a more resource-efficient economy, embedding climate change mitigation into our business strategy, and better facilitating our customers’ alignment in confronting these growing challenges.”
DOWNLOAD TILC’s COMPLETE GREEN FINANCING FRAMEWORK: