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

• SEC Charges Goldman Sachs for Ignoring ESG Investment Policies, Procedures
• President Biden at COP 27 Pledges US Leadership on Solving the Climate Crisis
• SEC – New Rules on Climate-Related Disclosures for Investors
• Ford Issues 2022 Integrated Sustainability and Financial Report
• Toyota to Cut AA Shares for Sustainable Development
• Lower Credit Ratings for Firms with Poor ESG Ratings