Traton issues €850 million in green financing for BEV truck and bus’ investments

Traton Group has issued €850 million in green financing to support investments in battery-electric commercial vehicles.

The Traton Group (under whose ombrella sit brands such as Scania and MAN) has placed its first Green Bond on the capital market and signed a Green Loan, allocating the proceeds to selected projects under its Group-wide Green Finance Framework. According to Traton Group, the combined financing volume amounts to €850 million and is linked to investments in battery-electric commercial vehicles and emission-free mobility.

Traton Green Bond: €500 million placed with 5.5-year maturity

According to Traton Group, the debut Green Bond has a volume of €500 million, a maturity of 5.5 years and a fixed coupon of 3.875%. The transaction is the first Green Bond issued under the Traton Green Finance Framework, launched in October 2025.

Traton Group also signed a bilateral Green Loan amounting to €350 million. Together, the Green Bond and the Green Loan bring the total green financing linked to the framework to €850 million.

The company stated that proceeds from both transactions will be allocated to “selected projects related to battery-electric commercial vehicles and emission-free mobility“. These investments fall within the “Clean Transportation” category defined by the Green Bond Principles of the International Capital Market Association (ICMA).

According to Traton Group, the Green Bond transaction generated an order book approximately 5.4 times larger than the issue size.

The Traton Green Finance Framework received a Dark Green shading from S&P Global Ratings, which represents the highest category within the agency’s assessment methodology.

Traton Group stated that a dedicated Green Finance Committee, integrated into the company’s existing governance structure, will oversee project selection, evaluation and monitoring processes linked to the framework.

An Allocation and Impact Report covering the Green Bond and Green Loan transactions is expected to be published within twelve months of issuance, according to Traton Group.

Dr. Michael Jackstein, CFO and CHRO of the Traton group: “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. Both transactions clearly demonstrate that green finance and industrial transformation go hand in hand at Traton.”