LeasePlan Successfully Issues EUR 500 Million Green Bond to Finance Battery Electric Vehicle Fleet
LeasePlan Corporation N.V.Â successfully issued its first ever Green Bond, a EUR 500 million 5-year fixed rate note.Â The bond attracted EUR 3.5 billion of demand with the participation of around 260 investors. 64% of the book was allocated to Responsible Investment-orientatedÂ investors.*
An industry first, the proceeds from the Green Bond will only be used to finance orÂ refinance the purchase of Battery Electric Vehicles (BEVs), speeding up the transitionÂ to electric driving and helping to tackle climate change.
The level of demand was a clear indication of the support from Europeâs institutionalÂ investor base for LeasePlanâs sustainability strategy to achieve net zero emissionsÂ from its total fleet by 2030.
Tex Gunning, CEO of LeasePlan, said:
âSustainable finance instruments are key to accelerating initiatives that help tackle climateÂ change. With the launch of the LeasePlan Green Bond Framework, we will be able to buyÂ more electric vehicles and accelerate the transition from internal combustion engines toÂ alternative powertrains.
Climate change is one of the biggest issues we face today and transport is one of theÂ biggest contributors. As a leasing company with 1.8 million cars on the road, we have aÂ responsibility to do everything we can to support the development of a more sustainableÂ transport system. Our aim is to help create healthier environments in our towns and cities byÂ promoting cleaner, low-emission vehicles and the infrastructure required to make these carsÂ a viable option for our customers.â
The LeasePlan Green Bond Framework is aligned with the Green Bond Principles andÂ qualifies under the âclean transportationâ category. It is anticipated that the proceeds willÂ support the achievement of the United Nations Sustainable Development Goals âGoodÂ Health and Well-Beingâ (SDG 3), âIndustry, Innovation and Infrastructureâ (SDG 9),Â âSustainable Cities and Communitiesâ (SDG 11) and “Climate Action” (SDG 13). A SecondÂ Party Opinion was provided by Sustainalytics.
Danske Bank, HSBC, ING and J.P. Morgan acted as joint bookrunners.
*Based on the Principles for Responsible Investment (PRI) signatory status
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