Mercedes-Benz Auto Finance Ltd. (MBAFC), part of the Mercedes-Benz Mobility group division, successfully issued its first Green Auto Loan Asset-Backed Security (ABS) in July 2024 in the Chinese Interbank Bond Market. The Class A Notes, totaling RMB 765 million (€100 million), were oversubscribed three times, with a weighted average life of 1.42 years and a coupon rate of 1.87%. The issuance was arranged by China Merchants Securities, BNP Paribas (China) Limited, Bank of China, and Standard Chartered Bank (China) Limited. This marks Mercedes-Benz’s first Green ABS globally and makes it the first foreign automotive company to issue a Green Asset-Backed Security in China.
The issuance of the Green Auto Loan ABS aligns with China’s domestic Green Bond standards for Finance Companies’ double-green approach. The collateral pool comprises auto loans for Battery Electric Vehicles, and the proceeds will be used to fund new auto loan contracts for Battery Electric Vehicles with MBAFC customers in the coming months.
“In line with our Ambition 2039, we continue to expand our green finance strategy. With this Green ABS, we are offering investors in the Chinese capital market another green financial investment. In 2022 and 2023, we had already successfully issued Green Panda Bonds,” said Steffen Hoffmann, Head of Treasury and Investor Relations of Mercedes-Benz Group AG
“With our product range we offer customers a comfortable entry into the electric era. The securitization of our customer receivables for electric vehicles demonstrates how much our financing products already support the sales of Mercedes-Benz electric vehicles,” said Franz Reiner, CEO of Mercedes-Benz Mobility
