PLANO, Texas, Nov. 21, 2017 /PRNewswire/ -- Toyota
Financial Services (TFS) issued its first-ever euro-denominated
unsecured Green Bond today, expanding its industry-leading
commitment to the sale of environmentally friendly vehicles.
The €600 million bond will be used to fund the acquisition of new
retail finance contracts and beneficial interests in lease
contracts for Toyota and Lexus vehicles that meet specific clean
air criteria, including powertrain, fuel efficiency and emissions.
There are currently nine vehicles in the Toyota and Lexus
lineup that qualify.
TFS revolutionized the Green Bond market by introducing the auto
industry's first-ever Asset-Backed Green Bond in 2014, and this
issuance marks the fourth Green Bond the company has issued.
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. Earlier this year, the Toyota Prius Prime
was named the 2017 World Green Car at the New York International
Auto Show. The Toyota Mirai captured the award in
2016.
"Toyota's environmental technology leadership and dedication to
environmentally sustainable business practices is well-known," said
Cindy Wang, TFS Vice President of
Treasury. "What many people may not realize is that we apply
this same level of environmental consciousness when developing our
funding programs. Our latest euro-denominated Green Bonds
will help put even more environmentally friendly vehicles on the
road."
To adapt its Green Bond program to the needs of European fixed
income investors, TFS worked closely with BNP Paribas and Credit
Agricole, both of which have long-standing relationships with TFS
and share its commitment to green innovation. Barclays, ING
and Unicredit joined BNP and Credit Agricole as the joint lead
managers for the bond issuance. All partners have noted
expertise in Socially Responsible Investing (SRI).
"Green transportation has been firmly in the headlines as an
important social and political issue, in which Toyota has taken a
strong lead. BNP Paribas is delighted to have worked with
them on their first euro-denominated Green Bond. Europe is home to over half the world's 'SRI'
investors, where demand for such paper significantly outstrips
supply," said Stephanie Sfakianos,
Head of Sustainable Capital Markets at BNP Paribas. "This is
reflected in the success of the transaction."
"European investors were extremely keen to buy the Toyota Green
Bond which has clearly created the benchmark standard for a Green
Bond in the automotive industry," said Tanguy Claquin, Head of
Sustainable Banking at Crédit Agricole CIB. "We are extremely proud
to have assisted them in this project."
The TFS Green Bond program was reviewed by Sustainalytics, a
leading global provider of environmental, social and corporate
governance research, ratings and analytics.
TFS has committed to use the proceeds of the Green Bond toward
the acquisition of new retail finance contracts and beneficial
interests in lease contracts for new Toyota and Lexus vehicles that
meet high green standards. Eligible vehicles must meet all
three criteria:
- Possess a gasoline-electric hybrid or alternative fuel
powertrain;
- Achieve a minimum of 35 highway and city miles per gallon (MPG
or MPG equivalent); and
- Receive a Smog Rating of 8 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 Toyota vehicles 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.
For more information about Toyota's commitment to the
environment, please visit
https://www.toyota.com/usa/environmentreport2016/
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 3,100 associates nationwide, and has assets
totaling over $120 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.
Points of Light has named TFS one of its Civic 50, which
recognizes the most community-minded companies in the nation. For
more information about the company's support of financial literacy,
youth development programs, and other community initiatives, please
visit www.tfsinthecommunity.com.
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SOURCE Toyota Financial Services