Green Bond Sales From Automakers Could Double In Global EV Push
- Honda, GM, Toyota may sell bonds, says Bloomberg Intelligence
- Large maturities, decarbonization goals to drive sector sales
A worker inspects a General Motors Co. vehicle on the assembly line at a Shanghai GM plant in Shanghai China
Photographer: Kevin Lee/BloombergAutomakers looking to fund their transition to electric vehicles could potentially borrow about $28 billion in green bonds globally this year, double the amount raised by the sector last year, according to Bloomberg Intelligence.
The sales surge will partly be driven by a large number of automakers’ bonds maturing this year that could be rolled into green bonds, Bloomberg Intelligence analyst Christopher Ratti wrote in a note on Monday. Up to $132 billion of bonds from auto manufacturers mature this year, the most in the next five years, according to BI analysis. Maturities this year average about $11 billion a month, with March and April having the highest dollar amounts.