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Volkswagen Bank GmbH has raised €1.5 billion in its first-ever green bond issuance, aimed at financing battery electric vehicles (BEVs) across Volkswagen Group brands. Issued in two tranches of 3 and 6 years, the bond is structured as “senior preferred,” enhancing investor protections.
The offering saw strong demand, with investor orders exceeding €6.6 billion, reflecting high market confidence in the bank’s sustainable finance strategy. Over 170 investors participated, with 30 engaging in in-depth discussions during a virtual roadshow.
Proceeds will be used exclusively to support BEV financing, in line with Volkswagen Financial Services AG’s Green Finance Framework and the Group’s broader Mobility2030 electrification goals.
Managing Director Oliver Roes called the launch a “strategic milestone,” adding that sustainability is now a core part of the bank’s refinancing strategy.
