Funding low-carbon transportation

MTR Corporation’s inaugural green bond is mobilising capital to scale low-carbon transport and energy smart urban infrastructure.

• MTR green bond funds low-carbon transport
• Proceeds support rail upgrades, renewables, resilience
• Find out more about Pendal’s Responsible Investing capabilities 

Regnan Credit Impact Trust and Pendal Sustainable Australian Fixed Interest Fund invested in MTR Corporation’s inaugural green bond, which directs proceeds toward a portfolio of low‑carbon transport and energy‑efficient urban infrastructure.

MTR is recognised as a global leader in electrified mass transit, carrying around 6.5 million passenger journeys each week across its networks, including in the Sydney and Melbourne metros.

The green bond finances and refinances eligible green investments under MTR’s Sustainable Finance Framework, with proceeds expected to support a range of climate‑aligned projects.

This includes major rail line extensions in Hong Kong, station energy‑efficiency upgrades, low‑carbon building improvements, renewable energy installations, biodiversity and conservation initiatives, and climate‑resilience works.

Several near‑term projects are likely to be funded through this issuance, including rail expansion programs that increase public transport capacity in new growth districts, replacement of older rolling stock and equipment with more efficient alternatives, and upgrades to station infrastructure aimed at reducing operational energy use.

The bond may also finance enhancements to MTR’s extensive property portfolio, where the company is targeting substantial reductions in scope 1 and 2 emissions intensity by 2030, as well as water and waste‑management improvements across its network.

This bond is significant as it supports one of the world’s most heavily used public transport systems, where scale magnifies climate benefits.

Hong Kong relies on public transport for roughly 11.7 million trips per day, and rail accounts for around 44 per cent of domestic journeys.

Improvements funded through this green bond help avoid emissions by shifting more commuters onto efficient rail networks, reducing road congestion, and accelerating energy‑efficiency gains across MTR’s operations.

These projects contribute to MTR’s science‑based targets, which include reducing well‑to‑wheel rail transport emissions by 46.2 per cent per passenger‑kilometre by 2030 and achieving carbon neutrality by 2050.

Source: https://www.mtr.com.hk/sustainability/assets/pdf/en/2024/MTR_Sustainable_Finance_Rpt_2024.pdf

Find out about

Pendal Sustainable
Australian Fixed Interest Fund

Learn more

George Bishay,
Head of Credit and
Sustainable Strategies