Volvo Cars today successfully raised EUR 500 million from a diverse group of investors by issuing its fifth green bond. The bond, which demonstrates the company's commitment to sustainable financing, was oversubscribed more than four times, and highlights strong investor support for Volvo Cars' electrification and sustainability ambitions.
The bond issuance further supports the company's long-term aim to have its outstanding debt linked to the Green Financing Framework, or in a sustainability-linked format.
The proceeds will be used to fund the company's ambition to be a leading player in the premium electric car segment and achieve net-zero greenhouse gas emissions by 2040. This includes funding research and development of upcoming electric cars and platforms, and related manufacturing processes.
Electrification is one of the main pillars of Volvo Cars' transformation agenda. With a fifth of its global sales consisting of fully electric cars, Volvo Cars continues to lead the fully electric transition among its premium legacy competitors. In addition, the company is committed to consistently reducing direct and indirect emissions from its cars.
The issued bond adheres to Volvo Cars' Green Financing Framework, which defines how it uses green financing instruments to support its ambitious sustainability strategy. The framework has been evaluated through Shades of Green, the methodology used by S&P Global for assessing green bond frameworks, and received the highest Dark Green rating.
"The success of our green bond issuance underscores the strong support that our valued investors have in Volvo Cars and in our all-electric and software-defined future," says Fredrik Hansson, Chief Financial Officer at Volvo Cars. "All proceeds will be used for our existing and future electric car programmes and related manufacturing processes."
The EUR 500m bond is issued under Volvo Cars' Euro Medium Term Note program. The bond matures in June, 2029 and pays a fixed coupon rate of 4.20 per cent and will be listed on the Luxembourg Stock Exchange.
Full details on the company's Green Financing Framework can be found HERE.
Notes to editor
With today's announcement, Volvo Cars will have in total five bonds outstanding with the following maturity profile:
- SEK 1.5bn Green bond issued in March 2023 and maturing in March 2026
- EUR 500m Green bond issued in October 2020 and maturing in October 2027
- EUR 500m Green bond issued in May 2022 and maturing in May 2028
- EUR 500m Green bond issued in June 2025 and maturing June 2029
- EUR 500m Green bond issued in May 2024 and maturing May 2030
In addition to the above, an existing EUR 500m bond matured earlier in January 2025.
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The Notes will be offered pursuant to Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act"). There is no assurance that the offering will be completed or, if completed, as to the terms on which it is completed. The Notes to be offered have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or unless pursuant to an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such offer, solicitation or sale would be unlawful.
This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of Regulation (EU) 2017/1129 (the "Prospectus Regulation"), including as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018. The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Regulation, as implemented in Member States of the European Economic Area and the United Kingdom, from the requirement to produce a prospectus for offers of securities.
In the United Kingdom, this announcement is being distributed to, and is directed at, only (a) persons who have professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"); (b) high net worth companies, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order; or (c) persons to whom an invitation or inducement to engage in an investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). The investments to which this announcement relates are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such investments will be available only to or will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Persons distributing this announcement must satisfy themselves that it is lawful to do so.
For further information please contact:
Volvo Cars Media Relations
+46 31-59 65 25
media@volvocars.com
Volvo Cars Investor Relations
+46 31-793 94 00
investors@volvocars.com
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Volvo Cars in 2024
For the full year 2024, Volvo Car Group recorded a record-breaking core operating profit of SEK 27 billion. Revenue in 2024 amounted to an all-time high of SEK 400.2 billion, while global sales reached a record 763,389 cars.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker "VOLCAR B".
"For life. To give people the freedom to move in a personal, sustainable and safe way." This purpose is reflected in Volvo Cars' ambition to become a fully electric car maker and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to achieve net-zero greenhouse gas emissions by 2040.
As of December 2024, Volvo Cars employed approximately 42,600 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg and Shanghai (China).
