Scandal-Plagued Volkswagen Places First Green Bonds
Posted on 10/15/2020
Volkswagen AG, which is getting a second start from its scandal with diesel and emissions, placed two green bonds with terms of 8 and 12 years and annual interest of 0.875% and 1.250%. Volkswagen Group successfully placed its first green bonds with a volume of € 2 billion in the market. The funds will be used for the modular electric drive matrix (MEB) and the new BEV models ID.3 and ID.4.
Frank Witter, Member of the Group Board of Management responsible for Finance and IT, said in a September press release: “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.”