Press Release

Braunschweig, June 17, 2025. Volkswagen Bank GmbH has issued its first green bond on the capital market. The issuance comprised a 3-year and a 6-year bond with a total volume of EUR 1.5 billion. The transaction is based on the Green Finance Framework established by Volkswagen Financial Services AG. Through the first-time application of the "senior preferred format", investors benefit from improved positioning in the creditor hierarchy and therefore greater security in the event of a regulator-initiated capital and debt restructuring.

Oliver Roes, Managing Director of Volkswagen Bank GmbH, commented: "We are delighted with the enormous interest investors have shown in our first green bond. Sustainability has now also become a fully established part of our refinancing mix in line with our Mobility2030 strategy."

As part of the marketing phase, investors had the opportunity to learn in detail about the strategy of Volkswagen Bank GmbH and the proposed transactions during investor meetings. More than 170 investors took part in a virtual roadshow, and over 30 investors engaged in in-depth discussions. Demand for the transaction peaked at over EUR 6.6 billion, with more than 300 orders distributed across the two tranches.

The proceeds from the green bond issuance will be used exclusively to refinance financing products for BEVs (Battery Electric Vehicles), i.e. purely battery-powered vehicles. In doing so, Volkswagen Bank is supporting the sales of electric vehicles from the Volkswagen Group brands.

Volkswagen Financial Services AG is a wholly-owned subsidiary of Volkswagen AG and, as part of Volkswagen Group Mobility, manages the European financial and mobility services business. The aim of Volkswagen Financial Services AG is to support the sales of the Volkswagen Group brands and increase customer loyalty. The company is a longstanding partner of the dealership network – as a provider of financial services and as an aide and advisor. Its core products include vehicle leasing and financing, insurance, and other vehicle-related mobility products – both for private customers and for individual commercial customers and fleet customers. Through its subsidiary, Volkswagen Bank GmbH, Volkswagen Financial Services AG is also active in the direct banking sector. Volkswagen Financial Services AG has 10,340 employees and reports total assets of around EUR 192 billion, an operating result of EUR 1.25 billion, and a portfolio of around 17.9 million current contracts (as at 31.12.2024). More information available at www.vwfs.com.