Toyota Leasing (Thailand) Co (TLT), the country's largest automotive leasing company, successfully completed the book-building process for its green debenture offering last month under TLT's 130-billion-baht medium-term note programme.
The two-year, one-month debenture sized at 2 billion baht is fully guaranteed by Toyota Motor Finance (Netherlands) B.V., a company rated A+/A1 with a stable outlook by S&P and Moody's, respectively.
This issuance is the first green debenture transaction for the company and the first for the leasing sector in Thailand.
The proceeds are for financing and refinancing TLT's selected hybrid vehicle portfolio. The eligible category for use of clean transport aligns with the Green Bond Principles 2018.
Sustainalytics, a second-party opinion provider, expects the eligible category to contribute to the decarbonisation of road transport in Thailand and advance the UN's Sustainable Development Goals in line with Toyota's path to a low-carbon future known as the "Toyota Environmental Challenge 2050".
Both TLT and Toyota Motor Finance (Netherlands) B.V. are subsidiaries of Toyota Financial Services Corp, which is a wholly-owned subsidiary of Toyota Motor Corporation, the group's parent company.
This green baht debenture was assigned an AAA rating by Tris Rating. The debenture was structured to fulfil the company's commitment as a regular issuer in the Thai debt capital market.