Saturday, May 28, 2022
News Ford Sells Green Bonds to Fund its Electric Transition

Ford Sells Green Bonds to Fund its Electric Transition

Ford is selling record amounts of green bonds

  • 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.

Trending Now

Study Says: 24% of Americans are Very Likely to Consider an EV

This is a 4% increase over last year The study shows most Americans either like EVs or they dislike them, with little middle...

General Motors Could Add a Second Charging Port to Some of its EVs

Patent images show a pickup with two charging ports next to one another Since GM separated its 800 Volt battery into two 400...

Upcoming Euro 7 Regulation Will Include Limitations to Particulate Emissions from Brake Pads

The latest regulations will also focus on reducing nitrogen oxides and sulphur oxides emitted by cars. Tires and brake components are under scrutiny...

Tesla is Already Looking at Expanding Giga Berlin

The new factory opened only a little over two months ago The company filed an application to purchase a piece of land next...

Couche-Tard and Circle K to Add Charging Stations to 200 Stores in North America by 2024

The two brands of convenience stores are operated by Alimentation Couche-Tard The company has already added EV chargers to some of its stores...


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.