- Volkswagen concludes first sustainability linked loan: Interest rate on the three-year €1.8 billion loan depends on the Volkswagen Group achieving its European CO2 fleet emission targets
- Group CFO Arno Antlitz: “We’re committed to our goal of systematically transforming our product portfolio toward electromobility and making Volkswagen a carbon-neutral company on the balance sheet by 2050. In the future, we will link our financing portfolio even more closely to these ambitious decarbonization targets. Following the successful placement of Green Bonds, we are now also meeting the growing demand for sustainable financial instruments in the area of loans.”
Volkswagen Group ties loan to sustainability target for the first time
The Volkswagen Group has for the first time concluded a loan with terms tied to achieving a sustainability target (sustainability linked loan). The interest rate on the three-year €1.8 billion agreement depends on the Volkswagen Group achieving its CO2 fleet emission targets in Europe. The funds will be used for refinancing and to cover new liquidity requirements. The loan is provided by a consortium of banks comprising Crédit Agricole (coordination), Banco Santander, Bayerische Landesbank, Commerzbank, Intesa Sanpaolo and Société Générale.