MBA 6081
Unit II Case Study – Volkswagen AG’s Green Bond
Columbia Southern University
MBA 6081 - Corporate Finance
Volkswagen AG: Green Bond Offering
Volkswagen was founded on 28 May 1937 by Germany’s National Socialist Party, and
the first production car was displayed at the Berlin auto show in 1939. After the second World
War, the Allies needed to resuscitate the German economy; getting Volkswagen back into
manufacturing was key to employment and fulfilling the burgeoning need for personal
transportation [CITATION his09 \l 1033 ]. Today, Volkswagen Aktiengesellschaft, also
known as Volkswagen AG, The Volkswagen Group or simply Volkswagen, is headquartered
in Wolfsburg, Germany. Total Sales revenue at the end of 2019 was € 252.6 billion, up 7.5%
from
2018. Operating profit was up 12% from 2018 to € 19.3 billion. [ CITATION Vol201 \l 1033 ]
The company is an amalgamation of twelve brands from seven European countries and includes
Volkswagen, Audi, SEAT, Bentley, Bugatti, Lamborghini and Porsche. More importantly with
regards to this case study, “The Volkswagen Group offers a wide range of financial services,
including dealer and customer financing, leasing, and banking.” [ CITATION Vol20 \l 1033 ]
This Case Study will focus on Volkswagen’s issuance of Green Bonds. These bonds are
a new and expanding category of fixed-income securities, designed to raise funds for
environmental projects such as renewables or low-carbon transport.[ CITATION Cli20 \l 1033 ]
In addition to raising funds for expansion, Volkswagen can increase their Environmental, Social,
and Corporate Governance (ESG) perception in the wake of the 2015 diesel emissions scandal.
Key Features
Volkswagen AG announced in March of 2020 that they would be setting up a green
Unit II Case Study – Volkswagen AG’s Green Bond
Columbia Southern University
MBA 6081 - Corporate Finance
Volkswagen AG: Green Bond Offering
Volkswagen was founded on 28 May 1937 by Germany’s National Socialist Party, and
the first production car was displayed at the Berlin auto show in 1939. After the second World
War, the Allies needed to resuscitate the German economy; getting Volkswagen back into
manufacturing was key to employment and fulfilling the burgeoning need for personal
transportation [CITATION his09 \l 1033 ]. Today, Volkswagen Aktiengesellschaft, also
known as Volkswagen AG, The Volkswagen Group or simply Volkswagen, is headquartered
in Wolfsburg, Germany. Total Sales revenue at the end of 2019 was € 252.6 billion, up 7.5%
from
2018. Operating profit was up 12% from 2018 to € 19.3 billion. [ CITATION Vol201 \l 1033 ]
The company is an amalgamation of twelve brands from seven European countries and includes
Volkswagen, Audi, SEAT, Bentley, Bugatti, Lamborghini and Porsche. More importantly with
regards to this case study, “The Volkswagen Group offers a wide range of financial services,
including dealer and customer financing, leasing, and banking.” [ CITATION Vol20 \l 1033 ]
This Case Study will focus on Volkswagen’s issuance of Green Bonds. These bonds are
a new and expanding category of fixed-income securities, designed to raise funds for
environmental projects such as renewables or low-carbon transport.[ CITATION Cli20 \l 1033 ]
In addition to raising funds for expansion, Volkswagen can increase their Environmental, Social,
and Corporate Governance (ESG) perception in the wake of the 2015 diesel emissions scandal.
Key Features
Volkswagen AG announced in March of 2020 that they would be setting up a green
