Finance
Ford Breaks Green Bond Record With $2.5 Billion Debut Sale
- The transaction is the largest ever from a U.S. corporation
- Deal is ‘strong example of a legitimate green bond’: investor
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Ford Motor Co. sold $2.5 billion of bonds whose proceeds are aimed at benefiting the environment, the automaker’s first as it transitions to making electric vehicles and the largest ever such offering from a U.S. corporation.
The Dearborn, Michigan-based company priced green bonds expected to mature in 10 years, according to a person with knowledge of the matter. The security yields 3.25%, after early pricing discussions in the 3.625% area, and net proceeds will be used exclusively for clean transportation projects and for the design, development and manufacturing of its battery electric-vehicle portfolio, the person said.