Scania issued another green bond, this time for SEK 3 billion, to fund its ongoing investments in electrification. The revenues will be utilised to further investment in battery-electric vehicle research. The bond’s high demand demonstrates that the capital market actively supports Scania’s goal of leading the transition to a more sustainable transportation system.
Scania has issued a second green bond as part of its continued investment in electrification technology. Scania became the first commercial heavy vehicle manufacturer to get permission for its green bond framework in 2020, with the revenues of its first bond being invested in the company’s battery facility and the development of battery-electric vehicles. Scania’s new green bond was bid on by around 20 Nordic banks, insurance firms, and pension fund managers.
“The development we see, where the financial community is taking part in driving the shift towards sustainable transports, is reassuring. We believe the interest in green investment needed to phase out fossil dependence in the world will continue to grow,” says Scania’s Chief Financial Officer Jonas Rickberg.
The globe is in the grip of an energy crisis, but long-term investment in electrification charging infrastructure is critical because higher quantities of battery-electric vehicles
“The need for investment to secure the transition to fossil-free transport is huge. We will use the green bond for continuous investment in electrification, since battery-electric vehicles are expected to constitute half of our sales in 2030,” Rickberg explains.
The Green Bond Framework serves as the foundation for discovering, selecting, confirming, and reporting projects that are qualified for green bond financing. Scania’s framework has been graded ‘dark green’ by CICERO Shades of Green, a leading environmental assessor of green and sustainability bond frameworks. This applies to projects and solutions that match to the long-term aim of a low-carbon and climate-resilient future. Proceeds will be handled in separate accounts in compliance with the Green Bond Principles, and the distribution will be publicly disclosed, along with the carbon reductions gained.