Volkswagen's Financial arm issues maiden €1.5 billion Green Bond, earmarked for funding the development of Electric Vehicles.
Volkswagen Bank Raises €1.5 Billion Through First Green Bond Issuance
Volkswagen AG's vehicle financing arm, Volkswagen Bank, has successfully raised €1.5 billion through its inaugural green bond issuance. The offering, which received demand of €6.6 billion, was oversubscribed, indicating strong investor interest in the bank's commitment to sustainable mobility.
The proceeds from the offering will be used exclusively to refinance financing products for battery electric vehicles, aligning with the company's Mobility2030 strategy. This strategic plan focuses on electrification, autonomous driving, and sustainable urban mobility, aiming to transform Volkswagen into a leading provider of green, connected, and intelligent mobility solutions by 2030.
A core aspect of the Mobility2030 strategy involves launching multiple affordable electric vehicle (EV) models, developing innovative autonomous electric vehicles, and building a diverse EV portfolio supported by advanced software and scalable vehicle platforms. The green bonds will help fund Volkswagen's rollout of affordable, mass-market electric cars under the "Electric Urban Car Family," a key part of their goal to make electric mobility accessible and widespread across multiple brands.
The funds will also support the development and commercial deployment of fully electric autonomous vehicles such as the ID. Buzz AV, contributing to lower emissions and the expansion of sustainable transport networks in cities. This aligns with green and climate-friendly initiatives and underscores Volkswagen's commitment to sustainable mobility.
Oliver Roes, Managing Director of Volkswagen Bank GmbH, expressed delight over the significant investor interest in the first green bond issuance. The issuance was comprised of a 3-year and a 6-year tranche, demonstrating the long-term commitment of investors to Volkswagen's sustainable mobility vision.
The interest from more than 170 investors signifies sustainability as a fully established part of Volkswagen Bank's refinancing mix, in accordance with their Mobility2030 strategy. By linking green bond proceeds explicitly to the production and expansion of battery electric vehicles and related clean technologies, Volkswagen underpins its Mobility2030 ambitions with sustainable financing mechanisms, ensuring accountability and transparency while accelerating their transition away from combustion engines toward zero-emission transport options.
- The proceeds from Volkswagen Bank's green bond issuance will be allocated exclusively to financing products for battery electric vehicles, aligning with Volkswagen's Mobility2030 strategy that focuses on renewable-energy and environmental-science.
- The green bond offering was oversubscribed, indicating a high level of interest from investors in the bank's commitment to climate-change solutions and the finance industry's role in supporting these initiatives.
- Volkswagen's Mobility2030 strategy includes the development of affordable electric vehicles and the creation of a diverse EV portfolio that leverages technology to transform the company into a provider of green, connected, and intelligent mobility solutions.
- The green bonds will help fund Volkswagen's efforts to develop and commercially deploy electric vehicles and autonomous driving technology, thereby contributing to the expansion of sustainable transport networks and a decrease in emissions, as part of green and climate-friendly initiatives.
