Mercedes-Benz issues its first Green Panda Bond expanding sustainable finance in China

Mercedes-Benz is the first automaker to issue a #green #pandabond: With a two year term and an annual coupon of 2.9%, the bond is 3.1 times oversubscribed

Panda bond as another example of expanding regional footprint in sustainable finance in line with Mercedes Benz Ambition 2039

Mercedes-Benz Mobility: Net proceeds will be used for financing leasing business of Battery Electric Vehicles

Stuttgart (Germany) – Mercedes-Benz International Finance B.V. successfully issued its first #green #pandabond on November 24, 2022 with a size of RMB 500 million (approx. EUR 68 million), a term of two years and a coupon rate of 2.9% in the Chinese Interbank Bond Market. The bond, which was 3.1 times oversubscribed is guaranteed by #MercedesBenz Group AG (ticker symbol: MBG). The issuance was arranged by Bank of #China and HSBC.

It is Mercedes-Benz’s first #green Bond outside of the European market and #MercedesBenz is the first #automotive company to issue a #green #pandabond in #China.

“The first #MercedesBenz #green #pandabond shows our ambition to further expand our sustainable finance strategy to our important growth regions around the globe.” - Steffen Hoffmann, Head of Treasury and Investor Relations of #MercedesBenz Group AG.

The bond was issued in line with #China domestic #green Bond standards and with the #MercedesBenz Ambition 2039. Net proceeds will go to #MercedesBenz subsidiary #MercedesBenz Leasing Co., Ltd. located in in #China, which will use these funds for financing new customer leasing contracts with Battery Electric Vehicles.

About our #pandabond activities in China

Back to 2014, #MercedesBenz Group became the first foreign non-financial corporate that issued a #pandabond. In 2021, #MercedesBenz Group became the first foreign "seasoned issuer” and since then issues public offering Panda Bonds. Since 2014, #MercedesBenz Group AG has issued 35 tranches with a total amount of RMB 81 billion (approx. EUR 11 billion), promoting the development of the #pandabond market. The issuance of the #green #pandabond is not only an effective extension of Mercedes-Benz Group’s sustainable business strategy, but also a brand-new #green finance exploration to the Chinese market. At the same time, the #green #pandabond further reflects the openness and innovation of the Chinese capital market in ESG sectors.