The car industry often clashes with the environmental lobby. Citigroup and Toyota, Financial Services though, are looking to change that through financing.
The two firms are offering the first ever “green bonds” for the auto industry. Green bonds are securities whose proceeds are used for projects that promote environmentalism. A number of banks, including Citibank, have issued green bonds before, but never in the auto finance industry.
Toyota’s $1.75 billion worth of bonds will be used to finance the purchase of high-efficiency vehicles ― any of the four Prius variants, Camry Hybrid, Avalon Hybrid, RAV4 EV, Lexus CT 200h and Lexus ES 300h ― according to published reports.
Could this be the start of a trend? Is it possible other lenders will get involved in environmental issues to help promote their image among an increasingly green population?
