Geely launches green bond for zero-emission black cabs
A NEW generation of black cabs will be going green after Zhejiang Geely Group, the Chinese owner of the London Taxi Company, raised $400m (£275m) to help develop zero-emission vehicles.
Geely is spending £250m on a new factory near Coventry to produce the cabs in an investment expected to create up to 1,000 jobs.
The company has announced it launched a “green bond” to help finance development of an electric version of the TX5 taxi, which was first revealed in London during President Xi Jinping’s state visit in October.
Proceeds from the bond will be used to finance design and engineering work on the power systems of new black cabs, which are expected to go on sale in the UK next year and globally in 2018.
The bond issue breaks new ground for Geely, which claims it is the first socalled green bond issued on international markets by a Chinese automotive company.
Geely said demand for the fundraising was strong, with it being six times oversubscribed. The five-year bond pays a 2.75pc coupon.
As well as producing the taxi, Geely is working on other electric designs including light commercial vehicles which it hopes will raise production levels at London Taxi Company as it seeks to enter new markets.
The new factory is expected to be able to turn out more than 30,000 vehicles a year, far more than the UK demand for taxis.
“We are committed to producing zero-emission capable vehicles,” said Peter Johansen, London Taxi Company chief executive. “The issuance of the green bond will further enhance our competitive edge in new energy technologies.”