Scania sells SEK 1.25 billion green bond to cut vehicle CO2 emissions

By Cady Vishniac

Detroit, Jan. 15 – Scania AB has sold a SEK 1.25 billion four-year bond to convert to producing electric vehicles, according to a press release.

About 30 Nordic banks, insurance companies and pension fund managers participated in the offering.

The company qualified to issue the bonds, its first ever green bond offering, in October, as previously reported.

The green bond framework constitutes the basis for identifying, selecting, verifying and reporting projects that are eligible for financing by green bond proceeds.

Norwegian Cicero Shades of Green has rated the framework “dark green,” which is allocated to projects and solutions that correspond to the long-term vision of a low carbon and climate resilient future.

Scania has set carbon-reduction goals. These include that from 2015 halving carbon emissions from its own operations by 2025 as well as reaching a 20% reduction of carbon dioxide emissions from its trucks, buses and engines, which constitutes more than 95% of Scania’s environmental impact. Scania has already reached its 2020 target to transition all its 10 major production facilities worldwide to fossil-free electricity.

The proceeds from Scania’s green bonds will be exclusively channeled to projects that will have a profound impact in reducing carbon dioxide emissions. These might include boosting the performance of heavy electric trucks and buses, e-bus based public transport systems and establishing an efficient charging infrastructure for electric trucks and buses.

Based in Sodertalje, Sweden, Scania is a manufacturer of commercial vehicles.

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