Traton secures €850 million for electric commercial vehicle transition
The Traton Group has raised €850 million through its first green bond and a separate green loan. The move marks a significant step in the company’s push toward sustainable financing. Both transactions will fund the shift from diesel to battery-electric commercial vehicles. The green bond totals €500 million, featuring a 5.5-year maturity and a fixed coupon rate of 3.875%. Investor demand was high, with the order book oversubscribed by roughly 5.4 times. This bond is the first green eurobond ever issued by a commercial vehicle manufacturer.
In addition, Traton secured a bilateral green loan worth €350 million. The combined €850 million will support projects under the 'Clean Transportation' category, following the International Capital Market Association’s Green Bond Principles. The company’s Green Finance Framework earned a 'Dark Green' rating from S&P Global Ratings, confirming its strong environmental focus. Traton has committed to reporting on the use of proceeds and their impact within 12 months. Michael Jackstein, Chief Financial and Labour Director, called the transactions a key milestone in advancing the company’s financing strategy.
The funds will accelerate Traton’s transition to battery-electric commercial vehicles. The company now has €850 million dedicated to sustainable transport initiatives. A detailed impact report is expected within the next year.
