LeasePlan Corporation N.V. successfully issued its first ever Green Bond, a EUR 500 million 5-year fixed rate note. The bond attracted EUR 3.5 billion of demand with the participation of around 260 investors. 64% of the book was allocated to Responsible Investment-orientated investors[1].
An industry first, the proceeds from the Green Bond will only be used to finance or refinance the purchase of Battery Electric Vehicles (BEVs), speeding up the transition to electric driving and helping to tackle climate change.
The level of demand was a clear indication of the support from Europe’s institutional investor base for LeasePlan’s sustainability strategy to achieve net zero emissions from its total fleet by 2030.
Tex Gunning, CEO of LeasePlan, said: “Sustainable finance instruments are key to accelerating initiatives that help tackle climate change. With the launch of the LeasePlan Green Bond Framework, we will be able to buy more electric vehicles and accelerate the transition from internal combustion engines to alternative powertrains. Climate change is one of the biggest issues we face today and transport is one of the biggest contributors. As a leasing company with 1.8 million cars on the road, we have a responsibility to do everything we can to support the development of a more sustainable transport system. Our aim is to help create healthier environments in our towns and cities by promoting cleaner, low-emission vehicles and the infrastructure required to make these cars a viable option for our customers.”
The LeasePlan Green Bond Framework is aligned with the Green Bond Principles and qualifies under the ‘clean transportation’ category. It is anticipated that the proceeds will support the achievement of the United Nations Sustainable Development Goals ‘Good Health and Well-Being’ (SDG 3), ‘Industry, Innovation and Infrastructure’ (SDG 9), ‘Sustainable Cities and Communities’ (SDG 11) and “Climate Action” (SDG 13). A Second Party Opinion was provided by Sustainalytics. Danske Bank, HSBC, ING and J.P. Morgan acted as joint bookrunners.
[1] Based on the Principles for Responsible Investment (PRI) signatory status
