LeasePlan issued a green bond that was over $500 million to finance or refinance the purchase of battery-electric vehicles (BEVs) in the company's fleet.
The bond, which is used for climate and environmental projects, was issued in an effort to fund LeasePlan’s sustainability strategy to achieve net zero emissions from its total fleet by 2030, according to the fleet management company. The bond attracted nearly $4 billion of demand with the participation of around 260 investors, and 64% of the book was allocated to responsible investment-orientated investors.
The company's EV strategy has three key elements: helping customers transition to electric technology by offering full package EV solutions’; offering carbon neutral contracts; and transitioning its own employee fleet to be fully battery-electric by 2021.
LeasePlan's efforts of the bond were also driven by the company's initiatives in tackling climate change.
"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," said Tex Gunning, CEO of LeasePlan. "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.”