Toyota Financial Services (TFS), the finance and insurance brand for Toyota (No. 10 on the Fair360, formerly DiversityInc Top 50 Companies for Diversity list) has issued a two-year, fixed-rate $750 million diversity and inclusion bond, the fifth of its kind, according to a news release.
The landmark bond will allow diverse underwriting firms to strengthen their experience working on high profile deals. It’s part of Toyota’s comprehensive funding program and puts a much-needed spotlight on quality businesses certified as minority- and women-owned business enterprises (MWBEs). The bond will also strengthen the relationship these firms have with their own investors by expanding their access to a primary bond offering.
“The corporate leadership Toyota Financial Services has demonstrated with their commitment to D&I issuances is unrivaled,” said David Jones, President & CEO of CastleOak Securities, one of the lead book-building managers in the transaction. “This offering marks their fifth D&I issuance totaling $3 billion, and will stand out not only because of the utilization of minority-owned firms as bookrunners, but also for the pricing with the lowest two-year fixed rate coupon to date. This highlights the fact that prioritizing diversity can lead to remarkable performance.”
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Other lead managers are Blaylock Van, L.L.C., CastleOak Securities, L.P., Great Pacific Securities, Ramirez & Co., Inc., and Siebert Williams Shank. All have worked closely with TFS via participation in industry events, panel discussions, and D&I bonds previously issued by TFS.
“Siebert Williams Shank appreciates the opportunity to be a part of Toyota’s fifth D&I transaction,” said Suzanne Shank, President and CEO of Siebert Williams Shank. “Our inclusion in a joint book-running manager role is a testament to Toyota’s leadership and continued commitment to diversity in the corporate capital markets, and our ability to contribute meaningfully to the success of the financing.”
Citigroup Global Markets Inc. (Citi) served as the lead stabilizing bank in the transaction.
“Citi is excited to lead this bond offering for Toyota Financial Services,” said Patrice Altongy, Citi’s Managing Director and Co-Head of Investment Grade Financial Institutions in North America. “Diversity and inclusion are shared core values, and although we recognize that there is still much work to be done in our respective industries to lead to true racial and gender equity, we applaud Toyota for continued investment in supplier diversity through this transaction and other initiatives.”
BurgherGray LLP, a minority-owned law firm, acted as co-issuer’s counsel with Davis Polk & Wardwell, L.L.P. O’Melveny & Myers, L.L.P., acted as underwriters’ counsel.
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“Toyota Financial Services has seen great success with its Diversity & Inclusion Bonds since we established this issuance platform in 2013,” said Mark Templin, TFS President and CEO, said. “Executing another D&I transaction further diversifies our investor base, increasing the depth and resiliency of our U.S. registered bond program. And more importantly, it demonstrates Toyota’s ongoing commitment to diversity, inclusion, and equality as core values.”
Along with attracting and advocating for a more diverse investor base, TSF’s D&I platform priorities include:
- A Diversity Advisory Board comprised of highly qualified individuals from government and corporate partners
- Diversity and Inclusion education for all associates
- Commitment to maintaining a perfect ‘100’ score from the Human Rights Campaign
- Securing a spot on Fair360, formerly DiversityInc’s Top 50 Companies list annually
For the past six years, TFS has also been named one of Points of Light Foundation’s Civic 50, the most community-minded companies in the nation, and recognized for its CSR initiatives and dedication to supporting and empowering communities.
