Fleet News

Zenith raises £475m green bond to finance electric vehicles

Tim Buchan, chief executive officer, Zenith

Zenith has raised a £475 million green bond to help it source and finance electric vehicles (EVs) to meet growing demand in the marketplace.

The UK vehicle leasing company has also entered into a new £65m revolving credit facility to replace an existing arrangement.

Tim Buchan (pictured), 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.”

The transaction is indicative of Zenith’s broader strategic goals in driving the take up of EVs and helping to decarbonise the UK vehicle parc. Zenith is one of the largest purchasers of EVs in the UK.

Currently, EVs make up more than 50% of the order book in Zenith’s corporate division indicating strong demand in this area.

ZenAuto, the business’ direct-to-consumer segment, is also experiencing strong consumer demand for EVs.

Zenith delivered EBITDA of £61.5m in its corporate fleet business, up £3.2m, or 5.4% on the previous year, according to its annual financial results up to Match 31.

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