Energy Efficiency, GHG Emissions, Finance - March 2, 2020
Toyota issues $750M green bond for clean vehicles
Toyota Financial Services announced Feb. 14 a $750 million green bond that will be used to fund new retail installment contracts and operating lease contracts to finance environmentally-friendly Toyota and Lexus vehicles.
This is the fifth green bond issued by Toyota. Proceeds from the bond will finance those vehicles that meet specific clean air criteria - powertrain, fuel efficiency and emissions - of which there are currently seven models in the Toyota and Lexus portfolio. Toyota also increased vehicle eligibility requirements from 35 miles per gallon to 40 miles per gallon.
“We provide the financing and leasing solutions that enable customers to get into the Toyota or Lexus of their choice,” Scott Cooke, TFS Chief Financial Officer, said in a statement. “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.”
In addition to the MPG requirement, eligible vehicles must have a hybrid or alternative fuel powertrain and receive a Smog Rating of 7 or better under guidelines established by the EPA.