Volvo Cars has raised €500 million (£427m) to accelerate its electric transformation through its second green bond.
More than two-thirds of the proceeds will fund the research and development of electric powertrains for next-generation pure electric Volvo cars as well as related new platform technology.
The rest of the six-year bond will be invested in boosting the company’s production capacity of fully electric vehicles.
Volvo Cars has raised the money to support its transformation towards becoming a fully electric carmaker by 2030 and becoming climate-neutral and circular by 2040.
Björn Annwall, Chief Financial Officer at Volvo Cars said: “Sustainability is central to our purpose and business and key to our future success. The high interest for our green bond is encouraging and a clear sign that the market believes in Volvo Cars and the investment plans we’ve developed to deliver on our climate ambitions. It also reaffirms our commitment to the Paris Climate Agreement and to become a climate-neutral company.
“With our green bonds, we offer more opportunities to investors. You can support our electrification and climate ambitions by becoming a shareholder – or by making a sustainability-focused investment through our green bonds. The financial community has a critical role to play in driving sustainable development, and we plan to continue to offer sustainable financing and investment opportunities in the future as we shift towards full electrification.”