Scania issues green bond to finance further investment in electrification

SÖDERTÄLJE, Sweden, Nov. 22, 2022 /PRNewswire/ — To help its continued investments in electrification, Scania issued one other inexperienced bond, this time totalling SEK 3 billion. The proceeds might be used for added funding within the growth of battery-electric automobiles. The robust curiosity within the bond reveals that the capital market actively helps Scania’s goal of driving the shift in the direction of a sustainable transport system. 

Scania has issued a second inexperienced bond, as a part of the corporate’s efforts to deepen its funding in electrification applied sciences. In 2020, Scania turned the primary producer of economic heavy automobiles to obtain approval for its framework for issuing inexperienced bonds, with the proceeds of its first bond being invested within the firm’s battery manufacturing facility and the event of battery-electric automobiles. 

Round 20 Nordic banks, insurance coverage firms and pension fund managers participated within the bidding for Scania’s new inexperienced bond. Proceeds are being channelled to tasks that can have a profound influence in lowering CO2 emissions, and can finance Scania’s steady analysis and growth of battery-electric automobiles.

“The event we see, the place the monetary group is participating in driving the shift in the direction of sustainable transports, is reassuring. We consider the curiosity in inexperienced funding wanted to section out fossil dependence on the planet will proceed to develop,” says Scania’s Chief Monetary Officer Jonas Rickberg. 

The world is within the midst of an power disaster, however long-term funding in electrification charging infrastructure stay very important, as bigger volumes of battery-electric automobiles sooner or later will allow fossil-free transport to occur.

“The necessity for funding to safe the transition to fossil-free transport is big. We are going to use the inexperienced bond for steady funding in electrification, since battery-electric automobiles are anticipated to represent half of our gross sales in 2030,” Rickberg explains.

The Inexperienced Bond Framework constitutes the idea for figuring out, choosing, verifying and reporting tasks which might be eligible for financing by inexperienced bond proceeds. The Norwegian firm CICERO Shades of Inexperienced, a number one environmental assessor of inexperienced and sustainability bond frameworks, has rated Scania’s framework ‘darkish inexperienced’, which applies to tasks and options that correspond to the long-term imaginative and prescient of a low-carbon and climate-resilient future. In accordance with the Inexperienced Bond Rules, proceeds might be managed in separate accounts and the allocation might be transparently reported, together with the carbon financial savings which were obtained. 

For additional data, please contact:
Erik Bratthall, Company Public and Media Relations Supervisor
Telephone: +46 76 724 45 27
E-mail: [email protected]

Jörgen Gustafsson, Appearing Head of Inner Financial institution
Telephone: +46 73 688 09 49
E-mail: [email protected]

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SOURCE Scania