TRATON issues first Green Bond and Loan to support electric commercial vehicles

TRATON GROUP has successfully completed its first Green Bond issuance and secured a Green Loan under its Group-wide Green Finance Framework, raising a combined total of €850 million to support investments in battery-electric commercial vehicles and emission-free mobility.

The financing package includes a €500 million Green Bond – the first green bond issued in euros by a commercial vehicle manufacturer – alongside a bilateral €350 million Green Loan. Both transactions were completed under the company’s Green Finance Framework launched in October 2025.

The Green Bond was issued with a maturity of 5.5 years and a fixed coupon of 3.875%. According to TRATON, the transaction attracted strong investor interest, generating an order book approximately 5.4 times the issue size.

The proceeds from both the Green Bond and Green Loan will be allocated to selected projects linked to battery-electric commercial vehicles and zero-emission transport solutions. Eligible investments fall within the “Clean Transportation” category under the International Capital Market Association (ICMA) Green Bond Principles.

Dr. Michael Jackstein, CFO and CHRO of the TRATON GROUP, said the transactions represented an important milestone in the group’s financing and electrification strategy.

“Our first Green Bond and Loan on TRATON level mark a clear milestone in the evolution of our financing strategy.”

“It translates our electrification strategy to the bond and loan markets and provides investors with a transparent and credible opportunity to participate in the transformation of commercial transport.”

He added: “Both transactions clearly demonstrate that green finance and industrial transformation go hand in hand at TRATON.”

TRATON’s Green Finance Framework has received a “Dark Green” rating – the highest possible sustainability assessment category – from S&P Global Ratings.

The company said a dedicated Green Finance Committee embedded within its governance structure will oversee project selection, evaluation and ongoing monitoring of funded initiatives.

TRATON also confirmed that an Allocation and Impact Report covering the Green Bond and Green Loan transactions will be published within 12 months of issuance.

The financing supports TRATON’s broader transition away from diesel-powered vehicles toward battery-electric powertrains as the commercial vehicle industry accelerates efforts to decarbonise freight and transport operations.