Carmakers tap green bonds for electric vehicles

New York

INVESTORS expect more carmakers to tap the green bond market after car companies raised US$2.5 billion in 2016 to finance electric and hybrid vehicles.

This month, the financial arm of Toyota Motor Corp sold a US$1.6 billion green bond to fund consumer purchases and leases of energy-efficient Toyota and Lexus vehicles. To meet demand, the bond was upsized from an earlier plan to sell US$1.2 billion.