Traton Secures €850 Million for Zero-Emission Trucks and Buses

Traton Group has raised €850 million through its first green bond and a new green loan. The move marks a major step in funding the shift from diesel to battery-electric commercial vehicles. Investors showed strong demand, oversubscribing the bond by more than five times its target. The company issued a €500 million green bond with a 5.5-year term and a fixed interest rate of 3.875%. This is the first green eurobond ever released by a commercial vehicle manufacturer. The funds will support projects under the 'Clean Transportation' category, following the Green Bond Principles set by the International Capital Market Association.

In addition, Traton secured a €350 million bilateral green loan. Both financings align with the company’s Green Finance Framework, which earned a 'Dark Green' rating from S&P Global Ratings. The framework ensures that proceeds will accelerate the transition to zero-emission vehicles. Traton has committed to reporting on the use of proceeds and their environmental impact within the next 12 months. More information is available on the company’s investor relations website.

The €850 million raised will directly fund the development of battery-electric trucks and buses. The oversubscription of the bond reflects investor confidence in Traton’s sustainability strategy. The company’s next steps include tracking and publishing the results of these green initiatives.