Scania Issues Green Bond to Finance Electrification Investment

Scania Issues Green Bond to Finance Electrification Investment

The funds will be used for additional investment in the development of battery-electric vehicles.

To support its continued investments in electrification, Scania issued another green bond, this time totaling SEK 3 billion (approx. $285 USD). The proceeds will be used for additional investment in the development of battery-electric vehicles. Scania says strong interest in the bond shows that the capital market actively supports Scania’s purpose of driving the shift toward a sustainable transport system. 

Scania has issued a second green bond, as part of the company’s efforts to deepen its investment in electrification technologies. In 2020, Scania became the first manufacturer of commercial heavy vehicles to receive approval for its framework for issuing green bonds, with the proceeds of its first bond being invested in the company’s battery factory and the development of battery-electric vehicles. 

Around 20 Nordic banks, insurance companies and pension fund managers participated in the bidding for Scania’s new green bond. Proceeds are being channeled to projects that will have a profound impact in reducing CO2 emissions and will finance Scania’s continuous research and development of battery-electric vehicles.

“The development we see, where the financial community is taking part in driving the shift towards sustainable transports, is reassuring. We believe the interest in green investment needed to phase out fossil dependence in the world will continue to grow,” says Scania’s Chief Financial Officer Jonas Rickberg. 

The world is in the midst of an energy crisis, but long-term investment in electrification charging infrastructure remain vital, as larger volumes of battery-electric vehicles in the future will enable fossil-free transport to happen.

“The need for investment to secure the transition to fossil-free transport is huge. We will use the green bond for continuous investment in electrification, since battery-electric vehicles are expected to constitute half of our sales in 2030,” Rickberg explains.

The Green Bond Framework constitutes the basis for identifying, selecting, verifying and reporting projects that are eligible for financing by green bond proceeds. The Norwegian company CICERO Shades of Green, a leading environmental assessor of green and sustainability bond frameworks, has rated Scania’s framework ‘dark green’, which applies to projects and solutions that correspond to the long-term vision of a low-carbon and climate-resilient future. In accordance with the Green Bond Principles, proceeds will be managed in separate accounts and the allocation will be transparently reported, along with the carbon savings that have been obtained. 

You May Also Like

BG Automotive Unveils Expanded Product Range

Ten new references have been added across BGA’s steering & suspension, cylinder head cover and timing chain ranges.

Automotive aftermarket supplier BG Automotive (BGA) has introduced 10 new references across its steering & suspension, cylinder head cover and timing chain ranges.

Eight new references have been added in January to the company’s steering & suspension range, covering popular models such as BMW, Hyundai, Opel/Vauxhall, Audi, VW, Honda and Kia.

Volvo Venture Capital Invests in Autonomous Trucking Tech

Waabi is developing next-generation artificial intelligence technology to solve autonomy at scale.

LIQUI MOLY Generates €800M in Sales in 2022

The company says in 2022 it was able to compensate for global challenges through its strategy and quick action. 

First NEXUS Academy Held At AVI Technician Conference

More than 250 technicians attended classes on Jan. 13-14, eager to learn and sharpen their automotive technical knowledge. 

Prospects for the Brazilian & South American Auto Industry

Julian Semple, consultant and manager of CARCON Automotive in Brazil, discusses 2022 results and prospects for 2023.

Other Posts

NEXUS Automotive International Creates Ecommerce Business Unit

Robbie Stevens named head of Ecommerce Business Unit.

Dana Earns ‘Top Employer 2023’ Award in 12 Countries

The parts supplier has been recognized for exceptional people practices and employee engagement.

Faurecia Completes Refinancing of HELLA Acquisition

The acquisition was entirely refinanced through pricing an additional €250 million of sustainability-linked senior notes.

ASOPARTES to Exhibit at AutoAméricas Congress and Expo 2023

It is the first show of its kind representing the aftermarket in South Florida, the Caribbean and Latin America.