Companies/ Energy Transition/ Sustainable Finance

Volkswagen Bank Issues Inaugural €1.5 Billion Green Bond to Finance Electric Vehicles

Mark Segal June 23, 2025

Volkswagen AG’s vehicle financing business Volkswagen Bank announced that it has raised €1.5 billion through its first-ever green bond issuance.

According to Volkswagen Bank, demand for the offering was strong, with more than 170 investors taking part in a virtual roadshow for the deal, and with the transaction drawing demand of €6.6 billion. The issuance was comprised of a 3-year and a 6-year tranche.

Proceeds from the offering will be used exclusively to refinance financing products for battery electric vehicles, the company added, supporting the sales of electric vehicles from the Volkswagen Group brands.

Oliver Roes, Managing Director of Volkswagen Bank GmbH, said:

“We are delighted with the enormous interest investors have shown in our first green bond. Sustainability has now also become a fully established part of our refinancing mix in line with our Mobility2030 strategy.”

Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.