Traton secures €850M in Europe's first green bond for electric trucks

Traton Group has raised €850 million through its first green bond and loan. The funding will support the company’s shift from diesel to battery-electric commercial vehicles. This marks the first green eurobond ever issued by a commercial vehicle manufacturer. The green bond totals €500 million, with a 5.5-year maturity and a fixed coupon rate of 3.875%. An additional €350 million comes from a bilateral green loan. Both instruments follow the International Capital Market Association’s Green Bond Principles under the 'Clean Transportation' category.

Investor demand was high, with the order book oversubscribed by around 5.4 times. The company’s Green Finance Framework also earned a 'Dark Green' rating from S&P Global Ratings, reflecting strong environmental standards. Michael Jackstein, Traton’s Chief Financial and Labour Director, called the transactions a key milestone in the firm’s financing strategy. The proceeds will fund projects accelerating the transition to zero-emission vehicles. Within 12 months, Traton plans to release a report detailing how the funds were used and their environmental impact.

The €850 million raised will help Traton expand its battery-electric vehicle range. The company’s first green eurobond sets a precedent in the commercial vehicle sector. A detailed impact report is expected within the next year.