TORRANCE, Calif., May 12, 2016 /PRNewswire/ -- Demonstrating
an ongoing commitment to supporting the sale of green
vehicles, Toyota Financial Services (TFS) issued its third
Asset-Backed Green Bond in the amount of $1.6 billion. TFS revolutionized the Green
Bond market by introducing the auto industry's first-ever
Asset-Backed Green Bond in 2014. Green Bonds are an
important component of TFS' broad-ranging funding program and serve
to enhance Toyota's already extensive green commitment.
Proceeds of the TFS Green Bond will be used to fund new retail
finance contracts and lease contracts for Toyota and Lexus vehicles
that meet specific criteria, including powertrain, fuel efficiency
and emissions. There are currently eight vehicle models in the
Toyota and Lexus portfolio that qualify.
The TFS Green Bond program is unique in the auto industry and
enhances Toyota's leadership reputation for green innovation.
Toyota currently offers hybrid editions in nearly all of its
vehicle categories. The company estimates that Toyota's 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.
"Toyota is dedicated to finding environmentally sustainable
solutions in everything we do," said Mike
Groff, TFS President & CEO. "That commitment extends
even to our funding activities, where the Green Bond is an example
of the innovation that TFS brings to the financial
marketplace. The Green Bond reflects our commitment to
enabling consumer access to environmentally friendly vehicles."
To develop the Green Bond, TFS worked closely with Citi, which
has a long-standing relationship with TFS and shares its commitment
to green innovation. Citi served as the structuring lead manager of
the bond, and Lloyds and RBC acted as joint-lead managers.
"Citi is thrilled to continue its support for Toyota Financial
Services as it issues its third asset-backed green bond," said
Tyler Dickson, Global Head of
Capital Markets Origination at Citi. "Through these
innovative transactions, Toyota is playing a leadership role in
meeting investor demand for environmentally friendly, energy
efficient assets, and Citi is proud to be its partner as the market
grows and evolves."
TFS will commit to use the proceeds of the Green Bond toward the
purchase of retail finance contracts and lease contracts for Toyota
and Lexus vehicles that meet high green standards as established by
three criteria:
- Gas-electric hybrid or alternative fuel powertrain
- Minimum EPA estimated MPG (or MPG equivalent for alternative
fuel vehicles) of 35 city / 35 highway
- EPA Smog Rating of 8 or better (10 being the cleanest), as
determined by the U.S. EPA for the purchase of a vehicle in
California
Qualifying models from Toyota include: Prius, Prius c,
Prius v, Camry Hybrid, Avalon Hybrid, and Mirai. From Lexus,
qualifying vehicles are CT 200h and ES 300h.
For more information on TFS' Capital Markets programs, please
visit www.toyotafinancial.com. For more information
about Toyota's commitment to the environment, please visit
http://www.toyota.com/usa/environment/environmental-report.
About 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). Lexus
Financial Services is the brand for financial products for Lexus
dealers and customers. TFS currently employs approximately 3,200
associates nationwide, and has assets totaling over $115 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.
For more information about the company's support of financial
literacy, after-school programs, and other community initiatives,
please visit www.tfsinthecommunity.com.
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SOURCE Toyota Financial Services