Bond Proceeds to Fund New Consumer Loans and Leases for Toyota’s Leading Portfolio of Green Vehicles
TORRANCE, Calif., May 13, 2016 – Demonstrating an ongoing commitment to supporting the sale of green vehicles, Toyota Financial Services (TFS) issued its third Asset-Backed Green Bond in the amount of $1.6 billion. TFS revolutionized the Green Bond market by introducing the auto industry’s first-ever Asset-Backed Green Bond in 2014. Green Bonds are an important component of TFS’ broad-ranging funding program and serve to enhance Toyota’s already extensive green commitment.
Proceeds of the TFS Green Bond will be used to fund new retail finance contracts and lease contracts for Toyota and Lexus vehicles that meet specific criteria, including powertrain, fuel efficiency and emissions. There are currently eight vehicle models in the Toyota and Lexus portfolio that qualify.
The TFS Green Bond program is unique in the auto industry and enhances Toyota’s leadership reputation for green innovation. Toyota currently offers hybrid editions in nearly all of its vehicle categories. The company estimates that Toyota’s hybrid technology has helped save more than 5.8 billion gallons of gasoline worldwide since 1997, and resulted in 58 million fewer tons of CO2 emissions.
“Toyota is dedicated to finding environmentally sustainable solutions in everything we do,” said Mike Groff, TFS President & CEO. “That commitment extends even to our funding activities, where the Green Bond is an example of the innovation that TFS brings to the financial marketplace. The Green Bond reflects our commitment to enabling consumer access to environmentally friendly vehicles.”
To develop the Green Bond, TFS worked closely with Citi, which has a long-standing relationship with TFS and shares its commitment to green innovation. Citi served as the structuring lead manager of the bond, and Lloyds and RBC acted as joint-lead managers.
“Citi is thrilled to continue its support for Toyota Financial Services as it issues its third asset-backed green bond,” said Tyler Dickson, Global Head of Capital Markets Origination at Citi. “Through these innovative transactions, Toyota is playing a leadership role in meeting investor demand for environmentally friendly, energy efficient assets, and Citi is proud to be its partner as the market grows and evolves.”
TFS will commit to use the proceeds of the Green Bond toward the purchase of retail finance contracts and lease contracts for Toyota and Lexus vehicles that meet high green standards as established by three criteria:
- Gas-electric hybrid or alternative fuel powertrain
- Minimum EPA estimated MPG (or MPG equivalent for alternative fuel vehicles) of 35 city / 35 highway
- EPA Smog Rating of 8 or better (10 being the cleanest), as determined by the U.S. EPA for the purchase of a vehicle in California
Qualifying models from Toyota include: Prius, Prius c, Prius v, Camry Hybrid, Avalon Hybrid, and Mirai. From Lexus, qualifying vehicles are CT 200h and ES 300h.
For more information on TFS' Capital Markets programs, please visit www.toyotafinancial.com. For more information about Toyota's commitment to the environment, please visit
About Toyota Financial Services
TFS is the finance and insurance brand for Toyota in the United States, offering retail auto financing and leasing through Toyota Motor Credit Corporation (TMCC) and Toyota Lease Trust. TFS also offers extended service contracts through Toyota Motor Insurance Services (TMIS). Lexus Financial Services is the brand for financial products for Lexus dealers and customers. TFS currently employs approximately 3,200 associates nationwide, and has assets totaling over $115 billion. It is part of a worldwide network of comprehensive financial services offered by Toyota Financial Services Corporation, a wholly-owned subsidiary of Toyota Motor Corporation. We announce material financial information using the investor relations section of our website (www.toyotafinancial.com) and SEC filings. We use these channels, press releases, and social media to communicate about our company, our services and other issues. While not all information we post on social media is of a material nature, some information could be material. Therefore, we encourage those interested in our company to review our posts on Twitter at www.twitter.com/toyotafinancial.
For more information about the company’s support of financial literacy, after-school programs, and other community initiatives, please visit www.tfsinthecommunity.com.
Justin Leach (310) 468-5332