'Green’ black cab gets $400m investment

London black cab maker Geely has raised $400 million (£274 million) through a green bond issue to fund the development of a zero emissions version of the classic taxi.

Chinese automotive group Geely, which bought Manganese Bronze out of administration for £11 million three years ago, said the cash would help it develop the TX5, a hybrid-battery-powered cab built in Coventry. It hopes to launch it next year in time to meet tougher London emission rules from 2018.

China has embraced green bonds, issued for environmentally friendly projects, accounting for half of the $17 billion issued in the first three months of this year. They offer investors tax breaks and, in Geely’s case, carry a credit guarantee from Bank of China.