With its first green bond Daimler AG (ticker symbol DAI) is steadily advancing towards CO2-neutral technologies and services.
The benchmark Eurobond issued by Daimler AG with a volume of €1 billion, a term of 10 years and an annual coupon of 0.75% was more than 4-times oversubscribed and driven by a high-quality order book. The issuance was arranged by BBVA, BNP Paribas, Commerzbank, Crédit Agricole, SEB and Unicredit.
Harald Wilhelm, Member of the Board of Management of Daimler AG, responsible for Finance & Controlling/Daimler Mobility, and of Mercedes-Benz AG, responsible for Finance & Controlling: ”CO2-neutral mobility and production is a clear goal and an integral part of our sustainable business strategy.
“The proceeds of our first green bond will be used exclusively for financing green projects, enabling the transformation towards a carbon-free company and industry. The strong demand for our green bond demonstrates the attractive conditions as well as the confidence of investors in our strategy.”
The green bond is in line with the International Capital Market Association’s (ICMA) Green Bond Principles and is guided by the Daimler Green Finance Framework, which was introduced in June 2020.
The Framework is a summary of the principles under which Daimler will utilise green financing instruments. It applies to a broad range of debt instruments such as green bonds, green promissory notes (Schuldscheine), green commercial paper and green loans.
Daimler will allocate the net proceeds from the green financing instruments in accordance with the Framework to develop and produce zero-emission vehicles such as battery-electric (BEV) and fuel-cell electric vehicles (FCEV), for example.
More than 50% of the proceeds will be allocated to the “Clean Transportation” Category. Furthermore, the proceeds may be used, for example, to upgrade manufacturing facilities or construct new facilities for the production of zero-emission vehicles and their drivetrains, and to establish the recycling of batteries and fuel cells.
One lighthouse project among others is Factory 56, where the all-new S-Class is assembled. The recently opened zero-carbon factory embodies the future of production at Mercedes-Benz and sets new standards for the automotive industry.
Daimler’s Framework obtained “Dark Green”, the highest rating of CICERO, a leading provider of independent, research-based evaluations of green finance frameworks. The second-party opinion from CICERO is available on Daimler’s website at:
Daimler will provide a Green Finance Investor Report on an annual basis in order to create transparency for investors and the public regarding the environmental impact of the investments in the financed projects. The use of the proceeds of Daimler’s green bond is in line with the Daimler Green Finance Framework. Project details will be revealed in the first Green Finance Investor Report, to be published in the third quarter of 2021.
HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR
CredoLab raises USD 7m to expand its market reach in Africa and other new markets
CredoLab, a leading developer of bank-grade digital credit scorecards based on smartphone metadata which launched in Nigeria, Kenya, and South Africa, last year, has secured USD 7 million in its Series-A round funding led by GBG, the global specialist in identity data intelligence.
Cars with embedded connectivity to reach 200m by 2025, with 5G adoption set to soar
A new study from Juniper Research has found that the number of cars with embedded connectivity will reach 200 million globally by 2025; rising from 110 million in 2020. One of the main beneficiaries of this growth will be mobile
Nitro121 promises bespoke offerings to clients, celebrates 15th anniversary
The leading brand-building and marketing communication company, Nitro 121 (formerly known as 141 Worldwide), turns fifteen on the 1st of September 2020 and promises to continue to deliver bespoke marketing communications services to clients and other partners.
Top 25 most valuable aerospace and defence brands could lose over $22bn of brand value from COVID-19
Aerospace and defence sector heavily impacted by COVID-19 pandemic, brands could lose up to 20% of brand value, equating to a US$22.8 billion loss cumulatively
