Toyota Motor Corp. is borrowing US$2.5 billion through itsfinance company to help support the sale of clean cars, marking thefirst U.S. corporate green bond deal this year.
Toyota Motor Credit Corp. is selling the debt in as many asthree parts, according to a person with knowledge of the matter.Only the 10-year security will be green, and it will yield 65 basispoints (bps) above Treasuries, after initially discussing in thehigh 70 bps range, the person said, asking not to be identified asthe details are private. Toyota will cap the green portion of thedeal at $750 million, the person said.
The proceeds of the other securities—a floating-rate note due2021 and five-year fixed-rate bond—will be used for generalcorporate purposes, the person said.
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