ING collaborated with Toyota Financial Services (TFS) and three other banks on the carmaker’s first euro green bond. The EUR 600 million bond will make environmentally friendly vehicles more accessible to consumers.
“This bookrunner mandate for Toyota confirms ING’s strong position in the green bond space. We are proud to support Toyota’s low-carbon strategy and to be recognized as one of their banking partners with noted expertise in socially responsible investing ,” said Christophe Dugardyn from ING’s Debt Capital Markets group.
The bond will be used to fund the sale and lease of new Toyota and Lexus vehicles that meet sustainability criteria such as fuel efficiency and emissions.
Companies issue green bonds specifically to fund projects that have an environmental benefit. Toyota’s green bond framework has been reviewed by Sustainalytics, a leading provider of environmental, social and corporate governance research and ratings, ensuring it meets industry standards and investor expectations.
“Our latest euro-denominated green bonds will help put even more environmentally friendly vehicles on the road,” said Cindy Wang, TFS vice president of Treasury in a company press release.
This isn’t the first time Toyota has allocated a green bond to the sale of low-emission vehicles. The company introduced the automotive industry’s first asset-backed green bond in 2014.
Toyota estimates that its 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.
“To support the sale of low-carbon vehicles and contribute to our low-carbon strategy, we are very pleased with this fourth green bond,” said Wang in the release. “Previously, we were active in the asset-backed green space, so we were eager to again pioneer the first green unsecured bond transaction by an automotive company.’’
Toyota vehicles that fall within the scope of the bond include the Camry Hybrid, Avalon Hybrid, Prius, Prius Prime, Prius C, Prius V, and Mirai. Qualifying Lexus vehicles include the CT 200h and ES 300h.