Electrification Push: Valeo’s €650M Green Bond Backs Low-Carbon Tech

Valeo, the global automotive technology company, has successfully raised €650 million through a green bond issuance aimed at advancing low-carbon mobility and vehicle electrification. The bonds, which mature on 20 May 2031, carry a fixed annual coupon rate of 5.125%.

Issued under Valeo’s Green and Sustainability-Linked Financing Framework, the bond marks a significant step in supporting the company’s CAP 50 strategy, its roadmap to achieving Net Zero emissions by 2050. The framework was first introduced in July 2021 and updated as recently as September 2023. The latest issuance supplement was approved by France’s Financial Markets Authority (AMF) on 7 May 2025.

According to the company, the proceeds from the green bond will be used to fund technologies that promote low-carbon mobility, especially projects focused on vehicle electrification. “The net proceeds of the transaction will be used for financing projects and investments linked to the portfolio of technologies that contribute to low-carbon mobility, in particular vehicle electrification,” Valeo said in a statement.

The joint active bookrunners for the bond issuance included leading financial institutions such as BNP Paribas, Crédit Agricole CIB, CIC, Helaba, ING, and Mizuho. This strong backing highlights investor confidence in Valeo’s long-term vision and environmental commitments.

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The CAP 50 plan forms the backbone of Valeo’s climate roadmap. It targets Net Zero emissions across the company’s global operations and within the entire European value chain. The new funding will help Valeo scale technologies that support a transition to sustainable transport, making cleaner mobility options more accessible.

“Valeo will continue to develop its portfolio of technologies that promote low-carbon mobility accessible to the greatest number,” the company noted.

With growing interest from institutional investors and climate-conscious stakeholders, this green bond enhances Valeo’s standing as a committed player in the shift toward vehicle electrification. It also offers a stable investment opportunity with strong sustainability credentials.

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As automakers and suppliers worldwide face increasing pressure to cut emissions and meet climate targets, Valeo’s latest move reflects a proactive approach to ensure its financial strategy and environmental goals are in sync. The €650 million raised not only fuels innovation but also demonstrates the company’s role in shaping the future of green mobility.

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