Citi Underwrites Auto Industry’s First-Ever Asset-Backed Green Bond for Toyota Financial Services

  Citi Underwrites Auto Industry’s First-Ever Asset-Backed Green Bond for
  Toyota Financial Services

Business Wire

NEW YORK -- March 24, 2014

Citi today announced that it has successfully closed Toyota Financial
Services’ (TFS) inaugural asset-backed green bond issuance. The $1.75 billion
offering, which was upsized from $1.25 billion due to strong investor demand,
represents a landmark transaction as the first green bond from an auto finance
company in the asset-backed securities (ABS) market.

Green bonds are instruments in which the proceeds are applied exclusively
toward projects and activities that promote climate or other environmental
sustainability initiatives. Toyota will use the net proceeds to acquire retail
installment sale contracts and lease contracts to finance new Toyota and Lexus
gas-electric hybrid or alternative fuel powertrain vehicles that meet certain
specified criteria.

Through its work in developing the transaction for TFS and serving as the
structuring lead underwriter, Citi has pioneered green bonds as a new asset
class in the ABS market.

Earlier this year Citi and 12 other banks introduced new Green Bond
Principles. With growing demand for investments with environmentally
beneficial characteristics, the Green Bond Principles serve as voluntary
guidelines that recommend issuers disclose information that is important to
investors, including use of proceeds, process for project evaluation and
selection, and management of proceeds. This process is intended to promote the
development of the green bond market and help investors evaluate the
environmental impact of bonds.

“We share Toyota’s commitment to sustainability and innovation, and we are
proud of our collaboration in bringing this landmark transaction to the
market,” said Tyler Dickson, Global Head of Capital Markets Origination at
Citi. “This transaction, which also clearly shows Citi’s commitment to the
tenets of the Green Bond Principles, allows Toyota to meet the demand of both
consumers and investors for clean transportation and green investment
opportunities.”

Added Citi’s Dickson: “With growing interest among investors and consumers in
clean transportation and environmentally beneficial assets, we believe there
is a tremendous opportunity to help more investors get the information they
need to make green investment decisions.”

Citi

Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citi provides
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services,
and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi |
YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook:
www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

Contact:

Media:
Citi
Robert Julavits, 212-816-8020
robert.w.julavits@citi.com
 
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