Ford sells US$2.8b in auto debt to boost tech spending

Southfield, Michigan

INVESTORS piled into Ford Motor Co's first automotive borrowing in almost four years, allowing the company to slash interest rates on a US$2.8 billion debt sale as it boosts spending on self-driving cars, mobility services and electrified vehicles.

The carmaker sold 10-year and 30-year notes on Monday, according to data compiled by Bloomberg. Investors put in about US$8.7 billion of orders for the bonds, said a person familiar with the matter, letting Ford sell more than the US$2 billion it initially anticipated. Ford's last automotive issue was for US$2 billion in January 2013. The company said that its car business had US$13.1 billion in debt at the end of September and net cash of US$11.2 billion.