Traton, the commercial vehicle group majority-owned by Volkswagen, has raised 850 million euros ($920 million) through green financing instruments to support its transition from diesel-powered trucks and buses to battery-electric drivetrains.
The company said the financing includes its first-ever green bond worth 500 million euros as well as a separate green loan valued at 350 million euros.
See also: Traton Secures €500 Million EIB Loan to Advance Modular Truck Platform
Traton introduced its Green Finance Framework in October 2025, allowing investors to support projects linked to battery-electric commercial vehicles and related infrastructure.
According to the company, the framework covers the full value chain, including vehicle development, production, charging infrastructure and financial services.
The newly issued green bond carries a maturity of 5.5 years and an annual interest rate of 3.875%. Traton did not disclose further details regarding the green loan agreement.
The company said the funding will support the electrification strategies of its brands, including MAN, Scania, International and Volkswagen Truck & Bus.
In the first quarter of 2026, electric vehicles accounted for 1.4% of Traton’s total sales, compared with 0.9% during the same period a year earlier.
The group attributed much of the increase to the launch of MAN’s battery-electric truck range centred around the MAN eTGX.
MAN has also been expanding its electric bus portfolio with the MAN Lion’s City E and plans to introduce the MAN Lion’s Coach E later this year.
See also: Traton Group Launches Green Finance Framework to Support Electric Commercial Vehicles
Meanwhile, Scania recently announced plans to offer Megawatt Charging System connectivity for its electric trucks and secured an order for 91 battery-electric buses in Södertälje, Sweden.
“Our first Green Bond and Loan on Traton level mark a clear milestone in the evolution of our financing strategy,” Michael Jackstein, chief financial officer of Traton, said in a statement.
“It translates our electrification strategy to the bond and loan markets and provides investors with a transparent and credible opportunity to participate in the transformation of commercial transport,” Jackstein added.
See also: Traton Unifies R&D Operations Across Brands to Accelerate Modular Electric Vehicle Development
“Both transactions clearly demonstrate that green finance and industrial transformation go hand in hand at Traton,” he said.