Press Release

Braunschweig, 18 September 2023. Volkswagen Leasing GmbH has completed its first Green Bond transaction. A total of three bonds with a volume of two billion euros were issued today on the basis of the recently published Green Finance Framework of Volkswagen Financial Services AG. Frank Fiedler, CFO of Volkswagen Financial Services AG, said: "We are very pleased to have successfully placed our first Green Bonds in the market. This means that the theme of sustainability, which is so important to us and our international investors and is a core element of our MOBILITY2030 strategy, is also being given appropriate weight in our strategic refinancing mix. At the same time, we are supporting the sales of electric vehicles from the Volkswagen Group."

The proceeds from the Green Bonds will be used exclusively to finance and refinance financing products for purely battery-operated vehicles known as BEVs (Battery Electric Vehicles). Transparent reporting on the use of funds is provided, with an external auditor confirming compliance with the framework requirements. In addition, the Green Finance Committee, an expert team consisting of board members and employees, has an additional monitoring function.

Frank Fiedler added: "As part of our MOBILITY2030 strategy, sustainability is embedded as a strategic dimension in all areas of our company. This includes our refinancing activities. Sustainability is also of great importance to our international investors. With the Green Bond, we are living up to market expectations and at the same time underlining the seriousness of our commitment."

Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA and Canada that belong directly or indirectly to Volkswagen AG – with the exception of the financial service business of the Scania brand and of Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. Volkswagen Financial Services have a total of 17,713 employees worldwide – including 7,692 alone in Germany. Volkswagen Financial Services report total assets of around EUR 240 billion, an operating profit of EUR 5.60 billion, and a portfolio of around 22.0 million current contracts (as at: 31.12.2022).