Volkswagen AG’s vehicle financing business Volkswagen Bank announced that it has raised €1.5 billion through its first-ever green bond issuance.
According to Volkswagen Bank, demand for the offering was strong, with more than 170 investors taking part in a virtual roadshow for the deal, and with the transaction drawing demand of €6.6 billion. The issuance was comprised of a 3-year and a 6-year tranche.
Proceeds from the offering will be used exclusively to refinance financing products for battery electric vehicles, the company added, supporting the sales of electric vehicles from the Volkswagen Group brands.
Oliver Roes, Managing Director of Volkswagen Bank GmbH, said:
“We are delighted with the enormous interest investors have shown in our first green bond. Sustainability has now also become a fully established part of our refinancing mix in line with our Mobility2030 strategy.”
