Volvo Cars raises EUR 500 million for electrification
Volvo Cars has placed its second green bond to raise EUR 500 million from a set of global investors. The bond was oversubscribed three-times.
Volvo says that all proceeds are earmarked for funding and accelerating the company’s transformation towards becoming a fully electric carmaker by 2030.
Over two thirds of the proceeds will go to research and development of electric powertrains for next generation pure electric cars from the company – as well as related new platform technology. The rest will be invested in boosting the company’s production capacity of fully electric cars.
“The high interest for our green bond is encouraging and a clear sign that the market believes in Volvo Cars and the investment plans we’ve developed to deliver on our climate ambitions. It also reaffirms our commitment to the Paris Climate Agreement and to become a climate neutral company,” says Björn Annwall, chief financial officer at Volvo Cars in a press release.