NS Issues $500M in Green Bonds

Norfolk Southern last week issued $500 million of green bonds to fund its sustainable business initiatives.

The bonds are part of a company program to reduce its greenhouse gas emissions in collaboration with the Science Based Targets Initiative.

In a news release, NS said the bond proceeds will be used for a number of purposes including improving its locomotive fleet’s fuel efficiency.

It plans to acquire Modern Tier 4 compliant high-horsepower or equivalent locomotives and use technology and/or devices that will improve efficiency, for instance.

NS said it also is investing in and expanding intermodal terminals that “promote the shift of freight from trucks to trains, using “cleaner energy” to power company operations, and supporting  “preservation or restoration of natural landscapes, such as reforestation projects.”

The Green Financing Framework is aligned with the Green Bond Principles 2018 and Green Loan Principles 2020.

NS said those initiatives “intend to promote integrity of the green financing market by offering guidelines that recommend transparency, disclosure and reporting in order to drive investors to allocate capital to projects that are more environmentally sustainable.”

NS said it expects to allocate the bond proceeds over the next three years.

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