Mercedes manufacturer ensnares investors with green bonds

Munich It’s a huge number: Daimler’s financing and leasing portfolio comprises almost 150 billion euros. The Stuttgart-based automaker has to refinance these liabilities on an ongoing basis – not least in order to boost sales of its core brand Mercedes-Benz.

So far, the Swabians have mainly used classic instruments such as bank loans, promissory note loans or securitization of customer receivables. For a little more than a year now, the DAX group has also been experimenting with sustainable forms of investment in which investors can directly support the development and production of electric vehicles.

Daimler has already issued two “green bonds” with a volume of one billion euros each and coupons of 0.75 percent. The third green bond should follow soon. “There will be more green bonds from us,” announced Daimler CFO Harald Wilhelm in an interview with the Handelsblatt.

The reason: “Compared to conventional bonds, we have to pay lower interest rates on green bonds and can thus lower our refinancing costs.”