The company is selling $2.5 billion of bonds, the largest offering by a US corporation ever
These bonds will finance the company’s transition to electric vehicles
Ford is also trying to reduce its debt and return to investment grade credit
Ford is committed to the electrification of its products and in order to speed it up, the company will sell green bonds.
This offering is the largest ever recorder from an American company, since it is worth $2.5 billion.
These bonds are expected to mature in 10 years and they should yield around 3.25% and the profits will be used exclusively to design, develop and manufacture clean energy products and projects.
This measure will also help Ford to buy back parts of its dept, up to $5 million of it, in order to return to an investment grade credit which will allow the company to send less money on its dept and more on new projects.
Customers and investors are putting pressure on companies to make them reduce their emissions and interest about green bonds is higher than ever, with global sales of $447 billion so far in 2021, which is already more than double the amount raised in the whole of 2020.
Ford has begun to take actions towards electrification by introducing the Mustang Mach-E electric SUV and the F-150 Lightning electric pickup, but it will need to release many more electric vehicles to achieve its goal.
This goal is to become carbon neutral by 2050 and much of the company’s chances for success reside in the popularity of these green bonds and the financial flexibility they will provide to the company in the next decades.