International. The funds will be used for additional investments in the development of battery electric vehicles.
To support its continued investments in electrification, Scania issued another green bond, this time totaling SEK 3 billion (approximately $285).
The proceeds will be used for additional investments in the development of battery electric vehicles. Scania says the strong interest in the bond shows that the capital market actively supports Scania's purpose to drive change towards a sustainable transport system.
Scania issued a second green bond, as part of the company's efforts to deepen its investment in electrification technologies.
In 2020, Scania became the first heavy commercial vehicle manufacturer to receive approval for its framework for green bond issuance, and profits from its first bond were invested in the company's battery factory and the development of battery-electric vehicles.
Around 20 Nordic banks, insurance companies and pension fund managers took part in the tender for Scania's new green bond.
The proceeds will be channelled to projects that will have a profound impact on reducing CO2 emissions and will fund Scania's ongoing research and development of battery electric vehicles.
"The development we see, where the financial community is participating in driving change towards sustainable transport, is reassuring. We believe that interest in the green investment needed to phase out the world's dependence on fossil fuels will continue to grow," said Jonas Rickberg, Scania's Chief Financial Officer.
The world is in the midst of an energy crisis, but long-term investment in electrification charging infrastructure remains vital, as higher volumes of battery electric vehicles in the future will enable fossil-fuel-free transportation.
"The need for investment to ensure the transition to fossil-free transportation is enormous. We will use the green bond for continued investment in electrification, as battery electric vehicles are expected to make up half of our sales by 2030," explains Rickberg.