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Toyota Motor Credit Sells Year’s First U.S. Company Green Bond

  • Carmaker’s finance arm is borrowing to help support clean cars
  • Division had sold $5.3 billion of green bonds through 2019
A Toyota Prius ahead of the Los Angeles Auto Show on Nov. 28, 2018. 

A Toyota Prius ahead of the Los Angeles Auto Show on Nov. 28, 2018. 

Photographer: Patrick T. Fallon/Bloomberg
Updated on

Toyota Motor Corp. borrowed $2.5 billion through its finance company to help support the sale of clean cars, marking the first U.S. corporate green bond deal this year.

Toyota Motor Credit Corp. sold the debt in three parts, according to a person with knowledge of the matter. Only the 10-year security will be green, and it will yield 65 basis points above Treasuries, after initially discussing in the high 70s-basis point range, the person said, asking not to be identified as the details are private. Toyota capped the green portion of the deal at $750 million, the person said.