Green Bond and Securitisation

We have diverse, scalable and sustainable sources of funding, enabling us to grow and support our customers.

In January 2022 Zenith raised its inaugural green senior secured fixed rate notes, due in 2027. In addition, the business entered into a new £65 million revolving credit facility (RCF) to replace its existing credit facility.

The senior secured notes (known as the green bond) are the UK vehicle leasing sector’s largest ever green bond. This green bond carries a commitment to spend at least an equivalent amount to the bond’s proceeds over a two-year period on eligible green projects or investments. This means that Zenith is committed to spending at least £475 million by January 2024 on BEVs or similar vehicles that have zero emissions at the tailpipe.

The new financing arrangements, via the green bond and the new RCF, provide a range of benefits for Zenith and our vehicle funding partners:

  • Credit rating of B+/B1 (stable) by S&P and Moody’s respectively
  • Term debt maturity extended to mid-2027 on attractive terms
  • Fixed coupon: attractive in a rising interest rate environment
  • Additional undrawn liquidity, via the undrawn £65 million RCF, and around £32 million cash on balance sheet from financing
  • Security position: the new bond is structurally subordinate to any vehicle financing or other asset financing downstream in the Group; this clarifies an existing position, and makes creditor ranking and priority more transparent for all concerned
  • Dozens of new funds and investors into Zenith; a strong signal of support for our business model, strategy, financial position and performance.


new securitisation facilities to support the funded fleet


commitment to spending on BEVs


credit ratings (stable)

Green financing and securitisation

In August 2021, Zenith rearranged and significantly extended its securitisation facilities, which provide the bulk of the vehicle funding to customers in the Corporate and Consumer businesses. These new facilities enable Zenith to expand its fleet and to create attractive opportunities for future growth across all divisions. The new securitisation facilities are on commercially-attractive terms.

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Sources of funding

Our spend versus green bond commitments

Total vehicles in eligible portfolio
Volume, #BEVs
Total spend on eligible portfolio
£ spend
Remaining balance of unallocated proceeds
Amount of percentage of financing versus refinancing
% / £
100% financing
Annual greenhouse gas emissions reduced/avoided (tCO2e pa)
tCO2e / year

Data based on spend from green bond completion date on 28 January 2022 to 31 March 2022.

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