Traton Secures €850 Million for Shift to Electric Commercial Vehicles
Traton Group has raised €850 million through its first green bond and a separate green loan. The move marks a significant step in funding the shift from diesel to battery-electric commercial vehicles. Investors showed strong demand, oversubscribing the bond by more than five times its value. The green bond itself totals €500 million, carrying a fixed coupon rate of 3.875% and a maturity period of 5.5 years. It is the first of its kind issued by a commercial vehicle manufacturer. The funds will support projects under the 'Clean Transportation' category, following the International Capital Market Association’s Green Bond Principles.
Traton’s Green Finance Framework earned a 'Dark Green' rating from S&P Global Ratings, confirming its alignment with strict sustainability criteria. The company also secured an additional €350 million through a bilateral green loan. Within the next 12 months, Traton will release a report detailing how the proceeds are used and the environmental impact of the financed projects. More information on the bond and loan can be found on the company’s investor relations website.
The combined €850 million will accelerate Traton’s transition to electric commercial vehicles. The oversubscription of the bond reflects investor confidence in the company’s sustainability strategy. Updates on progress and spending will be shared in the coming year.
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