Honda to raise $2.75bn through green bonds for EV push

Honda to raise $2.75bn through green bonds for EV push
Short Url
Updated 08 March 2022
Follow

Honda to raise $2.75bn through green bonds for EV push

Honda to raise $2.75bn through green bonds for EV push

In an attempt to boost its electrification push, Japanese automaker Honda is looking to raise $2.75 billion by issuing US dollar-denominated green bonds, according to a report in Carscoops. 

The automaker is planning to issue $1 billion worth of 3-year notes, $1 billion worth of 5-year notes, and $750 million worth of 10-year notes. 

The green bonds are expected to yield 1.12 percentage points above treasuries for Honda. 

Honda's bond prospectus suggests that it will allocate an amount equal to the net proceeds of the green bonds to host a number of green initiatives. 

Among these are increasing the production of electric vehicles, solar and wind technologies, and developing techniques to recycle used vehicle parts. 

In November 2021, Ford sold $2.5 billion of green bonds to help raise funds for its green initiatives including the much crucial transition to electric vehicles.