Volkswagen sells €2bn green bonds amid bids of €11bn

Volkswagen's transparent factory in Dresden

Volkswagen Group said on Wednesday it sold its first green bonds with a volume of €2 billion.

The bonds, denominated in euros, have terms of 8 and 12 years and coupons of 0.875% and 1.250% respectively.

Bids peaked above €11 billion euros, Bloomberg reported.

“Investors showed considerable interest, including both international and specialized green bond investors,” said Volkswagen.

“This is the first issuance based on the Green Finance Framework (GFF) for sustainability-oriented financial instruments presented in March.

“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.”

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.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.