Volvo Cars raises EUR 500m through new green bond issuance

Volvo Cars today successfully issued its fourth green bond and raised EUR 500m from a diverse group of global investors. The bond was oversubscribed four times underscoring strong investor support for Volvo Cars’ transformation journey. The initiative further supports the company’s aim to have 100 percent of its outstanding debt linked to the Green Financing Framework, or in a sustainability-linked format.

The proceeds will be used to support Volvo Cars’ ambitions on electrification and to achieve net-zero greenhouse gas emissions by 2040. This includes funding research and development within electric car platform technologies and powertrains. The funds will also be invested in the manufacturing process for electric cars.

The issued bond adheres to Volvo Cars’ Green Financing Framework, which defines how it uses green financing instruments to support its ambitious sustainability strategy. The framework has been evaluated through Shades of Green, the rating agency S&P Global’s methodology for assessing green bond frameworks, and received Dark Green, the highest rating.

“We have a solid liquidity position, and this issuance shows strong support for Volvo Cars and our transformation from valued investors,” says Johan Ekdahl, Chief Financial Officer, Volvo Cars.  “We will continue to explore more sustainable financing and investment opportunities in the future, as part of our aim for all our outstanding debt to be linked to the Green Financing Framework or in sustainability-linked format by 2025.”

The EUR 500m bond is issued under Volvo Cars’ Euro Medium Term Note program. The bond matures in May 2030 and pays a fixed coupon rate of 4.75 % and will be listed on the Luxembourg Stock Exchange.

Full details on our Green Financing Framework can be found here.

Notes to editor

With today's announcement, Volvo Cars will have in total five bonds outstanding with the following maturity profile:

• EUR 500m bond issued in November 2017 and maturing in January 2025
• SEK 1.5bn Green bond issued in March 2023 and maturing in March 2026
• EUR 500m Green bond issued in October 2020 and maturing in October 2027
• EUR 500m Green bond issued in May 2022 and maturing in May 2028
• EUR 500m Green bond issued in May 2024 and maturing May 2030

In addition to the above, an existing EUR 600m bond matured earlier in April 2024.

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The Notes will be offered pursuant to Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act"). There is no assurance that the offering will be completed or, if completed, as to the terms on which it is completed. The Notes to be offered have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or unless pursuant to an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such offer, solicitation or sale would be unlawful.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of Regulation (EU) 2017/1129 (the "Prospectus Regulation"), including as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018. The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Regulation, as implemented in Member States of the European Economic Area and the United Kingdom, from the requirement to produce a prospectus for offers of securities.

In the United Kingdom, this announcement is being distributed to, and is directed at, only (a) persons who have professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"); (b) high net worth companies, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order; or (c) persons to whom an invitation or inducement to engage in an investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). The investments to which this announcement relates are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such investments will be available only to or will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Persons distributing this announcement must satisfy themselves that it is lawful to do so.

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