In a major push toward its electrification and sustainability goals, Volvo Cars has successfully raised EUR 500 million through its fifth green bond issuance, attracting strong demand from a diverse group of global investors. The bond, issued under Volvo’s Euro Medium Term Note (EMTN) program, was oversubscribed by more than four times, underscoring investor confidence in the company’s all-electric future.
The five-year bond, maturing in June 2029, offers a fixed coupon rate of 4.20% and will be listed on the Luxembourg Stock Exchange. The proceeds will be directed exclusively toward funding Volvo’s next-generation electric vehicles (EVs), platform R&D, and sustainable manufacturing processes, in line with its Green Financing Framework.
The success of our green bond issuance underscores the strong support that our valued investors have in Volvo Cars and in our all-electric and software-defined future,” said Fredrik Hansson, Chief Financial Officer, Volvo Cars. “All proceeds will be used for our existing and future electric car programmes and related manufacturing processes.
Volvo Cars aims to achieve net-zero greenhouse gas emissions by 2040 and lead the premium electric car segment, with fully electric models accounting for 20% of its current global sales. The company is one of the few legacy premium automakers to receive a Dark Green rating — the highest possible — under the Shades of Green methodology from S&P Global, reaffirming the integrity and impact of its sustainability-linked financing.
Volvo’s Active Green Bond Portfolio:
| Bond | Amount | Maturity |
|---|---|---|
| SEK 1.5 bn (Mar 2023) | Green Bond | Mar 2026 |
| EUR 500 mn (Oct 2020) | Green Bond | Oct 2027 |
| EUR 500 mn (May 2022) | Green Bond | May 2028 |
| EUR 500 mn (May 2024) | Green Bond | May 2030 |
| EUR 500 mn (Jun 2025) | Green Bond | Jun 2029 |
An earlier EUR 500 million bond matured in January 2025, making today’s issue a strategic step to maintain sustainable capital flow for Volvo’s long-term transformation.
The offering was made under Regulation S of the U.S. Securities Act of 1933 and is not registered under U.S. or other jurisdictional securities laws, thus not available to general public investors in restricted markets. The issuance adheres to legal norms in the EU and UK, targeting only qualified institutional buyers and relevant investors.
With this successful issuance, Volvo Cars continues to consolidate its reputation as a frontrunner in the electric vehicle revolution and sustainable finance movement.
