Automakers Rev Up Green Bonds for Hybrids and Electric Vehicles
- Toyota’s financial arm leads auto green bond issuance
- China seen as next arena for green auto bonds after Geely
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Investors expect more automakers to tap the green bond market after auto companies raised $2.5 billion in 2016 to finance electric and hybrid vehicles.
This month, the financial arm of Toyota Motor Corp. sold a $1.6 billion green bond to fund consumer purchases and leases of energy-efficient Toyota and Lexus vehicles. To meet demand, the bond was upsized from an earlier plan to sell $1.2 billion. Zhejiang Geely Holding Group, which manufactures London taxis, raised $400 million this month in a green bond sale to finance development of zero-emission black cabs in the U.K. The Chinese automaker’s bond was close to six times oversubscribed.