Traton secures €850M in green financing to electrify commercial fleets
Traton secures €850M in green financing to electrify commercial fleets
Traton secures €850M in green financing to electrify commercial fleets
Traton Group has successfully raised €850 million through its first green bond and loan. The funding will accelerate the shift from diesel to battery-electric commercial vehicles. Investors showed strong demand, with the bond oversubscribed by more than five times its value. The company issued a €500 million green bond with a 5.5-year term and a fixed interest rate of 3.875%. The bond attracted significant attention, with the order book exceeding €2.7 billion—5.4 times the original amount. Alongside this, Traton secured a separate €350 million green loan.
All proceeds will finance projects under the 'Clean Transportation' category, following the International Capital Market Association’s Green Bond Principles. The funds will specifically support the development of zero-emission trucks and buses. Traton’s Green Finance Framework, which outlines the use of these funds, received a top 'Dark Green' rating from S&P Global Ratings. The company has committed to transparency by publishing a report on the allocation and environmental impact of the funds within 12 months of issuance.
The combined €850 million will help Traton expand its battery-electric vehicle range. A detailed report on the spending and its outcomes is expected by next year. The high investor demand reflects confidence in the company’s sustainability strategy.