Green bond raises £475m for vehicle leasing specialist
Vehicle leasing company, Zenith Automotive, says its wholly-owned subsidiary Zenith Finco Plc has raised £475m through a green bond.
In addition, Leeds-based Zenith Group has secured a new £65m revolving credit facility to replace its existing facility.
The proceeds from the transaction repaid in full the existing term facilities. The remaining amounts will be used for general corporate purposes and to pay fees and expenses in connection with the refinancing.
Tim Buchan, Zenith group chief executive, said: “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.
“This green bond will enable Zenith to remain at the forefront of sourcing and financing electric vehicles to meet the record levels of demand from UK motorists for low-emission transport.”
Over the next two years, the Zenith Group intends to spend more than the equivalent of the gross proceeds from the notes on financing or refinancing eligible green projects, including battery electric vehicles across its three divisions.
Zenith is one of the largest purchasers of electric vehicles (EVs) in the UK.
Currently, EVs make up over 50% of the order book in Zenith’s corporate division. ZenAuto, which is the business’ direct-to-consumer arm, says it is also experiencing strong consumer demand for EVs.
