Toyota Motor Corporation is preparing to issue $1.5 billion in sustainability bonds on Thursday to fund environmental and social initiatives, including the development of electric vehicles (EVs) and new safety technologies. The Japanese automaker recently filed the necessary documents with the U.S. Securities and Exchange Commission, marking its first issuance of dollar-denominated sustainability bonds in two years. Toyota has been issuing sustainability bonds under the name “Woven Planet Bond” since 2021.
Details of the Bond Issuance:
Toyota will issue bonds with three-year, five-year, and 10-year terms, each worth $500 million. The yields for these bonds are set at 5.275%, 5.118%, and 5.123% respectively. Moody’s Investors Service has assigned an “A1” credit rating to the bonds. The yields have been influenced by rising interest rates in the United States, which have increased compared to Toyota’s previous dollar-denominated issuance.
Toyota’s Previous Sustainability Bonds:
In 2021, Toyota issued a total of 430 billion yen ($3.02 billion) in sustainability bonds, with a split between dollar- and yen-denominated notes. Last year, the company only offered yen-denominated sustainability bonds worth 60 billion yen, and this year, it had already issued 100 billion yen in the Japanese currency by June.
Toyota’s Electric Vehicle Ambitions:
Toyota has set an ambitious target to sell approximately 1.5 million electric vehicles per year by 2026. The funds raised from the bond issuance will support the realization of this goal, as the company continues to invest in EV technology and infrastructure.
Toyota’s issuance of $1.5 billion in sustainability bonds will enable the company to advance its environmental and social projects, with a specific focus on electric vehicle development and safety technologies. As Toyota strives to expand its presence in the EV market, these funds will contribute to realizing its goal of selling 1.5 million electric vehicles annually by 2026.