Mercedes-Benz Issues First Green Panda Bond
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.