VW Sells €2.5 Billion Green Bond At Higher Cost Than September

Volkswagen Bank GmbH raised €2.5 billion ($2.9 billion) on Wednesday after selling a triple-tranche green bond with wider spreads than a deal carried out in September with similar structures and maturities.

The deal from the German automaker’s financial arm — which comes just weeks after parent company Volkswagen AG warned that semiconductor shortages and a slow EV transition were weighing on its performance — included a two-year floating-rate note, as well as two fixed-rate bonds with four- and seven-year maturities.