LeasePlan has issued its first-ever Green Bond to help it accelerate the numbers of fully electric vehicles on its fleet.

The Green Bond will help LeasePlan accelerate the transition to EVs

The €500m (£430m) five-year fixed rate note attracted €3.5bn (£3bn) of demand with the participation of around 260 investors. A total of 64% of the book was allocated to Responsible Investment-orientated investors

The proceeds from the Green Bond will be used to finance or refinance the purchase of fully electric vehicles and forms part of its bid to achieve net zero emissions from its total fleet by 2030.

It follows a similar move last October by ALD Automotive.

Tex Gunning, CEO of LeasePlan, said: “Sustainable finance instruments are key to accelerating initiatives that help tackle climate change. With the launch of the LeasePlan Green Bond Framework, we will be able to buy more electric vehicles and accelerate the transition from internal combustion engines to alternative powertrains.

“Climate change is one of the biggest issues we face today and transport is one of the biggest contributors. 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. 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.”