Zenith Group has raised a £475m green bond to help further its work in supporting the switch to electric vehicles.

Chief executive Tim Buchan said the green bond will enable Zenith to remain at the forefront of sourcing and financing EVs to meet record levels of demand

It’s believed to be the largest green bond raised in the UK vehicle leasing sector and will enable Zenith to remain at the forefront of sourcing and financing electric vehicles to meet record levels of demand, according to chief executive Tim Buchan.

Currently, EVs make up over 50% of the order book in Zenith’s corporate division, indicating strong demand in this area, while it’s also seeing strong consumer demand for EVs in its ZenAuto direct-to-consumer business.

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 (BEVs) across its three divisions, in accordance with its Green Financing Framework.

Tim Buchan commented: “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.”

Zenith’s work to cut emissions saw it achieve carbon-neutral status in September 2021, as accredited by international environmental consultancy Carbon Footprint. This was on the back of a carbon offset strategy that included a comprehensive examination of its company car use, energy used to power the company’s buildings, home vehicle charging and a wide range of factors in its supply chain.

It’s now working across the business and supply chain to reduce emissions further.

Alongside the new green bond, which matures in 2027, Zenith Group has entered into a new £65m revolving credit facility to replace its existing credit facility. The proceeds from the transaction repaid in full the existing term facilities, and the remaining amounts will be used for general corporate purposes and to pay fees and expenses in connection with the refinancing.