LeasePlan issues Green Bond
LeasePlan has successfully issued its first ever Green Bond, a €500 million 5-year fixed rate note. Around 260 investors participated and 64% of the book went to Responsible Investment-orientated investors.
This Green Bond was issued to support LeasePlan’s sustainability strategy to achieve net zero emissions from its total fleet by 2030. In October 2018, ALD issued a similar green bond to finance its own green fleet expansion.
Tex Gunning, CEO of LeasePlan, said: “Sustainable finance instruments are key to accelerating initiatives that help tackle climate change. With the launch of the LeasePlan Green Bond Framework, we will be able to buy more electric vehicles and accelerate the transition from internal combustion engines to alternative powertrains.”
“Climate change is one of the biggest issues we face today and transport is one of the biggest contributors. As a leasing company with 1.8 million cars on the road, we have a responsibility to do everything we can to support the development of a more sustainable transport system. Our aim is to help create healthier environments in our towns and cities by promoting cleaner, low-emission vehicles and the infrastructure required to make these cars a viable option for our customers.”
LeasePlan, a founding partner of The Climate Group’s EV100 initiative, has a three-pronged EV strategy:
- Helping customers go electric by offering full package EV solutions
- Offering carbon-neutral contracts. LeasePlan offers its customers the opportunity to offset all their emissions in the transition period via a partnership with Land Life Company
- Transitioning the LeasePlan employee fleet to electric vehicles with the aim of being fully electric by 2021
At the 2018 Fleet Europe Summit, Mr Gunning spoke about his company's electrification ambitions: