Toyota Financial Services Issues Fifth Green Bond, Reinforcing Toyota’s Commitment to Sustainability
$750 million bond proceeds finance environmentally friendly vehicle sales
PLANO, Texas (February 14, 2020) – Toyota Financial Services (TFS) issued its latest unsecured Green Bond, reinforcing the company’s industry-leading commitment to the sale of environmentally friendly vehicles. Proceeds from the $750 million bond will be used to fund the acquisition of new retail installment contracts and operating lease contracts financing Toyota and Lexus vehicles that meet specific clean air criteria, including powertrain, fuel efficiency and emissions. There are currently seven vehicle models in the Toyota and Lexus lineup that qualify. With this latest iteration of its Green Bond program, Toyota increased the vehicle eligibility requirements from 35 miles per gallon to 40 miles per gallon.
TFS revolutionized the Green Bond market by introducing the auto industry’s first-ever Asset-Backed Green Bond in 2014. This issuance marks the fifth Green Bond the company has issued, and its first ever unsecured Green Bond offered in US Dollars. Green Bonds are an important component of TFS’ diversified funding program and serve to enhance Toyota’s extensive commitment to environmental causes.
The TFS Green Bond program is unique in the auto industry and enhances Toyota’s reputation for leadership in green innovation across industries. The Toyota Corolla which includes the Corolla Hybrid was named the 2020 Green Car of the Year by Green Car Journal. Toyota has sold over 3.6 million hybrid vehicles in the United States, and over 13.5 million worldwide. Since 1997, Toyota hybrids have reduced CO2 emissions by 108 million tons versus comparable gasoline-powered vehicles.
“We provide the financing and leasing solutions that enable customers to get into the Toyota or Lexus of their choice,” said Scott Cooke, TFS Chief Financial Officer. “Our Green Bonds are an important tool that TFS uses to fund the sale of environmentally friendly vehicles while providing an attractive option for sustainability investors.”
TFS has committed to use the proceeds of the Green Bond toward the acquisition of new retail installment contracts and operating lease contracts financing new Toyota and Lexus vehicles that meet each of the three eligibility criteria:
- Possess a gasoline-electric hybrid or alternative fuel powertrain;
- Achieve a minimum of 40 highway and city miles per gallon (MPG or MPG equivalent); and
- Receive a Smog Rating of 7 or better (where 10 is the cleanest), as determined by the United States Environmental Protection Agency for the purchase of a vehicle in California.
Qualifying vehicles include the Toyota Avalon Hybrid, Toyota Camry Hybrid, Toyota Corolla Hybrid, Toyota Mirai, Toyota Prius, Toyota Prius Prime, and the Lexus ES 300h.
The TFS Green Bond program was reviewed by Sustainalytics, a leading global provider of environmental, social and corporate governance research, ratings and analytics.
Citigroup and Credit Agricole CIB advised TFS on the green structuring considerations for the offering. BNP, JP Morgan and Mizuho served as additional joint lead managers for the transaction.
For more information about Toyota’s commitment to the environment, please visit:
For more information on TFS’ Capital Markets programs, please visit www.toyotafinancial.com.
About Toyota Financial Services
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). The company services Lexus dealers and customers using the Lexus Financial Services brand. TFS currently employs approximately 3,200 team members nationwide, and has assets totaling over $122 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.