Volkswagen Bank Launches First Green Bond Offering
Deal News | Jul 11, 2025 | Hogan Lovells
Volkswagen Bank GmbH has announced its first foray into green bonds with a €1.5 billion issuance. This historic debut on 19 June 2025 marks a significant step for the bank under the Green Finance Framework initiated by Volkswagen Financial Services AG. The bonds feature maturities of 3 and 6 years with respective coupons of 2.750% and 3.500% per annum. The proceeds will be strategically utilized to refinance green projects focusing on battery electric vehicles, enhancing Volkswagen Group's electric vehicle sales. Hogan Lovells played a pivotal advisory role, leveraging its longstanding relationship with Volkswagen Financial Services and its banks.
Sectors
- Financial Services
- Automotive
- Renewable Energy
Geography
- Germany – Volkswagen Bank GmbH and its parent company Volkswagen Financial Services AG are based in Germany, thus making it central to the article.
- Luxembourg – The bonds were admitted to trading on the Luxembourg Stock Exchange, making Luxembourg relevant in the context of the bond issuance.
Industry
- Financial Services – The issuance of green bonds by Volkswagen Bank GmbH pertains to the financial services industry, particularly focusing on banking and capital markets activities.
- Automotive – The use of proceeds from the green bonds by Volkswagen Bank GmbH will finance electric vehicle projects, thereby directly impacting the automotive industry.
- Renewable Energy – The bond proceeds are designed to support projects that further the development and sales of battery electric vehicles, suggesting an emphasis on renewable and sustainable energy solutions.
Financials
- EUR 1.5 billion – Total issuance volume of the green bonds.
- 2.750% and 3.500% p.a. – Coupons for the 3-year and 6-year green bonds respectively.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Volkswagen Bank GmbH | Issuer | Company | The company issuing the €1.5 billion green bonds. |
| Hogan Lovells | Legal Advisor | Company | Legal advisor for Volkswagen Bank GmbH's bond issuance. |
| Volkswagen Financial Services AG | Parent Company | Company | Parent company of Volkswagen Bank GmbH and part of the corporate restructuring. |
| Luxembourg Stock Exchange | Exchange | Company | The market on which the bonds were admitted to trading. |