Vehicle leasing company Zenith Group has raised a £475m green bond to further its work switching to EVs.
Over the next two years, the group intends to spend in excess of the equivalent of the gross proceeds from the notes on financing or refinancing eligible green projects, including battery electric vehicles across its three divisions, in line with its Green Financing Framework.
The bond, which matures in 2027, is believed to be the largest green bond raised in the UK vehicle leasing sector.
Currently, EVs make up more than 50% of the order book in Zenith’s corporate division, while it is also seeing strong demand for EVs in its ZenAuto direct-to-consumer business.
The company has already undertaken a comprehensive examination of its company car use, energy used to power its buildings, home vehicle charging and a wide range of factors in its supply chain.
Zenith Group achieved carbon-neutral status in September 2021, as accredited by international environmental consultancy Carbon Footprint.
Tim Buchan Zenith chief executive says the bond will enable the company to remain at the forefront of sourcing and financing EVs to meet record levels of demand.
He added, “Our mission at Zenith has never been clearer – to eliminate tailpipe emissions from the UK vehicle parc. I am therefore delighted to raise this green bond.
“Sustainability is a key aspect of our strategy and we are always looking at how we can reduce our own impact on the environment.”
The company has also entered into a new £65m revolving credit facility to replace its existing credit facility.