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Volkswagen issues green bonds to finance MEB, EVs | Automotive Industry News

Volkswagen Group claims it has effectively placed its 1st green bonds with a volume of EUR2bn earmarked to fund EV tasks, together with its MEB platform.

The benchmark bonds, which are denominated in euros, have phrases of eight and twelve many years and coupons (returns to buyers) of .875% and one.250% respectively. VW claims buyers showed significant curiosity, together with both equally intercontinental and specialised green bond buyers. 

VW claims the proceeds of the bonds will be utilised in a targeted way to fund the modular electric drive matrix (MEB) and the new BEV models ID.3 and ID.4. Annual reporting on the use of the proceeds and the environmental effects accomplished will produce transparency for buyers, it claims.

Frank Witter, Member of the Group Board of Management responsible for Finance and IT, reported: “With the issuance of our 1st Environmentally friendly Bonds, we are supplying buyers the possibility to make sustainable investments in the upcoming of e-mobility. It is a strategic milestone in our financing method, which we blend with our corporate target of CO2 neutrality in 2050. The Volkswagen Group is thus effectively active in the essential growth section of green bonds. Within just the framework of our thorough electric offensive, this will progressively be the case in the upcoming.”

The cash generated by the 1st green bonds will be utilised in a targeted way for the refinancing of tasks related with the modular electric drive matrix (MEB) and the new BEV models ID.3 and ID.4. The tasks will involve investments and expenses for conceptual layout, infrastructure, development and creation of the modular electric drive matrix (MEB) by itself, for the electric automobiles described higher than primarily based on this matrix and the creation amenities required as nicely as instruments and programs from suppliers and essential components (this sort of as batteries).