Pioneering loan

BayernLB finances the Volkswagen Group’s first ever sustainability-linked loan

BayernLB has joined forces with Crédit Agricole, Banco Santander, Commerzbank, Intesa Sanpaolo and Société Générale to provide the Volkswagen Group with a EUR 1.8 billion loan, with terms and conditions linked for the first time to achieving a sustainability goal. The interest rate of the sustainability-linked loan with a three-year term depends on the Volkswagen Group achieving its fleet carbon emissions goal in Europe. The Group plans to use the funds for refinancing and to meet new liquidity requirements.

In 2018 the Volkswagen Group was the first car manufacturer to sign up to the Paris Agreement climate targets and set itself the goal of making the company climate neutral on its books by 2050. In 2021 the Group posted a year-on-year revenue increase of 138 percent in e-mobility, making it the market leader in Europe.

The successful transaction is further proof of BayernLB’s expertise in ESG advisory and automotive.