Toyota Asset-Backed Green Bond Helps Drivers Buy Hybrids
First, they brought you the Prius. Then, they brought you the Mirai. Now, Toyota is issuing an Asset-Backed Green Bond—only the second one the industry has ever seen—in order to help support the sale of green vehicles. The bond, which was issued by Toyota Financial Services (TFS), totals $1.25 billion, and proceeds from it will help to fund new retail finance and lease contracts for certain Toyota and Lexus vehicles.
The vehicles covered by this must meet certain criteria. These include gas-electric hybrid or alternative fuel powertrain, a minimum EPA-estimated MPG rating of 35 city and 35 highway, and either patrial or total zero emissions vehicles. This means that eight current Toyota and Lexus vehicles—the Toyota Prius, Prius c, Prius v, Prius Plug-In, Camry Hybrid, Avalon Hybrid; and the Lexus CT 200h and ES 300h—would currently qualify.
“Investors enthusiastically welcomed the continuation of the auto industry’s sole Green Bond program from Toyota Financial Services,” said Mike Groff, TFS CEO. “The Green Bond itself represents the innovation that TFS brings to the financial marketplace and reflects Toyota’s commitment to environmentally friendly transportation. Its proceeds will enable us to continue to provide Toyota and Lexus customers with attractive financing options for their vehicles.”
TFS also issued the first-ever Asset-Backed Green Bond in 2014. These programs are unique in the automotive industry, and reflect Toyota’s commitment to developing and selling eco-friendly vehicles that serve real-life drivers.