Zenith Automotive Holdings Ltd, together with its subsidiaries, has announced that Zenith Finco, its wholly-owned subsidiary, has closed its inaugural offering of £475,000,000 green senior secured fixed rate notes due 2027. The group has also entered into a new £65 million revolving credit facility to replace its existing credit facility.
The group said 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.
Over the next two years, the Zenith Group intends to spend in excess of the equivalent of the gross proceeds from the bond on financing or refinancing eligible green projects, including battery electric vehicles (EVs) across its three divisions, in accordance with its Green Financing Framework, which has been assessed by Sustainalytics, a leading global ESG research and analytics consultancy.
Tim Buchan, 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 EVs to meet the record levels of demand from UK motorists for low-emission transport.”
Currently, EVs make up over 50% of the order book in Zenith’s corporate division while ZenAuto, the business’ direct-to-consumer segment, is also experiencing strong consumer demand for EVs.
