Volkswagen Group says it has successfully placed its first green bonds with a volume of EUR2bn earmarked to fund EV projects, including its MEB platform.
The benchmark bonds, which are denominated in euros, have terms of 8 and 12 years and coupons (returns to investors) of 0.875% and 1.250% respectively. VW says investors showed considerable interest, including both international and specialised green bond investors.
VW says the proceeds of the bonds will be used 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 achieved will create transparency for investors, it says.
Frank Witter, Member of the Group Board of Management responsible for Finance and IT, said: “With the issuance of our first Green Bonds, we are giving investors the opportunity to make sustainable investments in the future of e-mobility. It is a strategic milestone in our financing strategy, which we combine with our corporate target of CO2 neutrality in 2050. The Volkswagen Group is thus successfully active in the key growth segment of green bonds. Within the framework of our comprehensive electric offensive, this will increasingly be the case in the future.”
The funds generated by the first green bonds will be used in a targeted way for the refinancing of projects connected with the modular electric drive matrix (MEB) and the new BEV models ID.3 and ID.4. The projects will include investments and expenditures for conceptual design, infrastructure, development and production of the modular electric drive matrix (MEB) itself, for the electric vehicles mentioned above based on this matrix and the production facilities required as well as tools and systems from suppliers and key components (such as batteries).