Mercedes-Benz International Finance issued in the Chinese Interbank Bond Market its first Green Panda Bond yesterday, 24 November 2022, in the amount of RMB 500 million (~€68 million). The term was two years with an annual coupon rate of 2.9%.
A so-called green bond is a fixed-income financial instrument used to support climate-related or environmental projects. They may or not be tax free. The Green Panda Bond further reflects what Daimler said is the openness and innovation of the Chinese capital market in ESG sectors.
In our view it also shows how out of touch the Republican party of No Hope (aka nope), is on environmental and economic matters with its denial of climate change and so far futile attempts to kill such instruments in the US and punish corporate or retirement fund or other issuers. (AutoInformed.com: Daimler Issues Its First Green Bond of €1 Billion, more below*)
Mercedes said the bond is 3.1 times over-subscribed. Net proceeds go to the Mercedes-Benz subsidiary Mercedes-Benz Leasing Co., Ltd. located in in China, which will use these funds for financing new customer leasing contracts for Battery Electric Vehicles.
The bond is guaranteed by Mercedes-Benz Group AG (ticker: MBG). The issuance was arranged by Bank of China and HSBC. It is Mercedes-Benz’s initial Green Bond outside of the European market
“The first Mercedes-Benz Green Panda Bond shows our ambition to further expand our sustainable finance strategy to our important growth regions around the globe,” said Steffen Hoffmann, Head of Treasury and Investor Relations of Mercedes-Benz Group AG.
In 2014, Mercedes-Benz Group became the first foreign non-financial corporate that issued a Panda Bond. In 2021, Mercedes-Benz Group became the first foreign “seasoned issuer” and since then issued public offering Panda Bonds. The Group has issued 35 tranches with a total amount of RMB 81 billion (approx. €EUR 11 billion), taking advantage of the development of the Panda Bond market.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Mercedes-Benz First Automaker Issuing Green Panda Bonds
Mercedes-Benz International Finance issued in the Chinese Interbank Bond Market its first Green Panda Bond yesterday, 24 November 2022, in the amount of RMB 500 million (~€68 million). The term was two years with an annual coupon rate of 2.9%.
A so-called green bond is a fixed-income financial instrument used to support climate-related or environmental projects. They may or not be tax free. The Green Panda Bond further reflects what Daimler said is the openness and innovation of the Chinese capital market in ESG sectors.
In our view it also shows how out of touch the Republican party of No Hope (aka nope), is on environmental and economic matters with its denial of climate change and so far futile attempts to kill such instruments in the US and punish corporate or retirement fund or other issuers. (AutoInformed.com: Daimler Issues Its First Green Bond of €1 Billion, more below*)
Mercedes said the bond is 3.1 times over-subscribed. Net proceeds go to the Mercedes-Benz subsidiary Mercedes-Benz Leasing Co., Ltd. located in in China, which will use these funds for financing new customer leasing contracts for Battery Electric Vehicles.
The bond is guaranteed by Mercedes-Benz Group AG (ticker: MBG). The issuance was arranged by Bank of China and HSBC. It is Mercedes-Benz’s initial Green Bond outside of the European market
“The first Mercedes-Benz Green Panda Bond shows our ambition to further expand our sustainable finance strategy to our important growth regions around the globe,” said Steffen Hoffmann, Head of Treasury and Investor Relations of Mercedes-Benz Group AG.
In 2014, Mercedes-Benz Group became the first foreign non-financial corporate that issued a Panda Bond. In 2021, Mercedes-Benz Group became the first foreign “seasoned issuer” and since then issued public offering Panda Bonds. The Group has issued 35 tranches with a total amount of RMB 81 billion (approx. €EUR 11 billion), taking advantage of the development of the Panda Bond market.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.