VW Group has concluded its first sustainability linked loan, with the interest rate dependent on achieving European CO2 fleet emission targets

The three-year €1.8 billion agreement will be used for refinancing and to cover new liquidity requirements. The loan is provided by a consortium of banks comprising Crédit Agricole, Banco Santander, Bayerische Landesbank, Commerzbank, Intesa Sanpaolo and Société Générale.

Group CFO Arno Antlitz added: “We’re committed to our goal of systematically transforming our product portfolio toward electromobility and making Volkswagen a carbon-neutral company on the balance sheet by 2050. In the future, we will link our financing portfolio even more closely to these ambitious decarbonisation targets. Following the successful placement of Green Bonds, we are now also meeting the growing demand for sustainable financial instruments in the area of loans.”

Following the emission scandal, VW Group made a rapid electrification offensive, and up to the end of September the Group delivered more than 290,000 all-electric vehicles worldwide, a year-on-year increase of 138 per cent, making it a market leader in Europe and second in the US. Its goal is for some 50 per cent of its global deliveries to be all-electric vehicles in 2030.

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