Mercedes-Benz Issues First Green Panda Bond

Published on:
KnowESG_green_bond
picture of Mercedes-Benz issueing its first green bond denominated in Chinese yuan, expanding its sustainable financing options

Mercedes-Benz International Finance B.V. successfully issued its first Green Panda Bond on November 24, 2022, with a size of RMB 500 million (approx. EUR 68 million), a term of two years, and a coupon rate of 2.9% in the Chinese Interbank Bond Market.

The bond, which was 3.1 times oversubscribed, is guaranteed by Mercedes-Benz Group AG (ticker symbol: MBG). The issuance was arranged by the Bank of China and HSBC.

It is Mercedes-Benz’s first Green Bond outside of the European market, and Mercedes-Benz is the first automotive company to issue a Green Panda Bond in China.

"The first Mercedes-Benz Green Panda Bond shows that we want to expand our strategy for sustainable finance to key growth areas around the world." Steffen Hoffmann, Head of Treasury and Investor Relations of Mercedes-Benz Group AG.

The bond was issued in line with China domestic Green Bond standards and with Mercedes-Benz Ambition 2039. Net proceeds will go to Mercedes-Benz subsidiary Mercedes-Benz Leasing Co., Ltd., located in China, which will use these funds for financing new customer leasing contracts with Battery Electric Vehicles.

Source: Mercedes-Benz

For more sustainable finance news

Share:
esg
esg
esg
esg

Sustainable Finance Headlines

EGA Launches Green Finance Framework for ESG Projects

EGA Launches Green Finance Framework for ESG Projects

BIS and MAS Team Up to Tackle Climate Risk in Finance

BIS and MAS Team Up to Tackle Climate Risk in Finance

Digital Payments Slash CO2, Says Worldline Study

LSFI Names Avico Deputy CEO for Sustainability

SAB Recognised for Excellence in Banking and ESG

YIT Establishes a New Green Finance Framework

Terna Secures €250 Million ESG-Linked Credit Facility

PTI Converts €1.2B Credit into Sustainability Loan

BBVA Expands Decarbonisation Goals to Real Estate, Aluminium

Air Liquide Issues €500M Green Bond for Green Projects

More from Mercedes-Benz Group
Mercedes-Benz And The Electrification Issue
Mercedes-Benz And The Electrification Issue
Mercedes-Benz Converts Credit Facility to Sustainability-Linked Loan
Mercedes-Benz Converts Credit Facility to Sustainability-Linked Loan
Mercedes-Benz and Microsoft Partner to Boost Vehicle Efficiency
Mercedes-Benz and Microsoft Partner to Boost Vehicle Efficiency
Daimler Buses to Provide Carbon-Neutral Vehicles in All Segments by 2030
Daimler Buses to Provide Carbon-Neutral Vehicles in All Segments by 2030