Toyota sells bonds to finance its futuristic city goals

Toyota Motor Corp sold $1.5 billion of investment-grade bonds to help finance social and environment-friendly projects aligned with a futuristic city the company is constructing at the base of Mount Fuji in Japan. The Japanese automaker issued sustainability notes in three parts, according to a person with knowledge of the matter. The longest portion, a 10-year note, will yield 0.77 percentage point above Treasuries, after initial discussions of around one percentage point above the benchmark, the person said, asking not to be identified discussing a private matter. Technology vision and innovation Proceeds from the bonds, which the company refers to as “Woven Planet Bonds,” will be used to finance eligible projects that may include advanced driving assistance technology that make it safer for the elderly, children and people with disability and carbon emission reduction initiatives, according to its sustainability bond framework. A similar issuance from the company was well-received by investors in 2023. The bonds are part of Toyota’s “Woven Planet” initiatives that also include Woven City, which is expected to be a “living laboratory” for testing and developing new technologies, including artificial intelligence, robotics and self-driving cars. Real-world impact and timeline Toyota is planning to move in the first 100 residents of the city by as soon as this fall. Yesterday’s bond offering is one of 10 in the U.S. high-grade market Tuesday, where deals have continued to price early this week despite uncertainty stemming from the war between Israel and Iran. Six companies sold investment-grade bonds on Monday, pushing this month’s sales above $70 billion. Toyota’s bonds are expected to be rated A1 by Moody’s Ratings and A+ by S&P Global Ratings. JPMorgan Chase & Co. led the sale, with Bank of America Corp, Morgan Stanley, Nomura, and Citigroup Inc also serving as bookrunners. By Caleb Mutua and Ethan M Steinberg

Toyota sells bonds to finance its futuristic city goals

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Published June 25, 2025

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Toyota sells bonds to finance its futuristic city goals