Volvo Cars placed its second green bond to raise EUR 500m from a diverse set of global investors.
All proceeds are earmarked for funding the company’s transformation towards becoming a fully electric carmaker by 2030 and becoming climate neutral and circular by 2040.
Over two thirds of the proceeds will fund the research and development of electric powertrains for next generation pure electric Volvo cars as well as related new platform technology, while the rest will be invested in boosting the company’s production capacity of fully electric cars.
The EUR 500m 6-year fixed rate senior unsecured green bond was issued under Volvo Cars’ Euro Medium Term Note programme. The bond matures on 31st May 2028, pays a fixed coupon of 4.25%, equivalent to 291 basis points above mid-swap, and will be listed on the Luxembourg Stock Exchange.