Traton secures €850M in landmark green bond for electric trucks

The Traton Group has successfully raised €850 million through its first green bond and loan. The move marks a major step in funding the company’s shift from diesel to electric commercial vehicles. Investors showed strong demand, oversubscribing the bond by more than five times its original size. The green bond totals €500 million, carrying a 5.5-year term and a fixed interest rate of 3.875%. It is the first eurobond of its kind issued by a commercial vehicle manufacturer. The company also secured a separate €350 million green loan, bringing the total raised to €850 million.

The funds will support projects under the 'Clean Transportation' category, following the International Capital Market Association’s Green Bond Principles. Traton’s Green Finance Framework earned a 'Dark Green' rating from S&P Global Ratings, confirming its strong environmental focus. The proceeds will specifically accelerate the transition from diesel-powered to battery-electric trucks and buses. Traton plans to release a detailed report on how the funds are used and their environmental impact within a year. The bond’s success also highlights growing investor interest in linking sustainable transport with financial markets.

The raised capital will directly fund Traton’s electrification efforts, tying financial markets to cleaner commercial transport. With the bond oversubscribed and a high sustainability rating, the company now has clear funding to expand its electric vehicle projects. A progress report on the use of proceeds is expected within the next 12 months.