Ford to retire $5 billion in high-interest debt, issue green bonds
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Monday
January 30, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
MONDAY, JANUARY 30, 2023
Ford to retire $5 billion in high-interest debt, issue green bonds

Global Economy

Reuters
04 November, 2021, 06:35 pm
Last modified: 04 November, 2021, 06:38 pm

Related News

  • Ford to sign off the GT with a 800hp track car
  • Ford stock has biggest daily drop since 2011 after inflation warning
  • Ford will challenge dealers to match Tesla's lower selling costs
  • Princess Diana's unique Ford Escort fetches $850,000 at auction
  • Ford cuts 3,000 jobs as it pivots to EVs, software

Ford to retire $5 billion in high-interest debt, issue green bonds

Ultimately, the automaker aims to regain an investment grade rating for itself and Ford Credit, its captive financing arm, which in turn would lower the cost of future borrowing

Reuters
04 November, 2021, 06:35 pm
Last modified: 04 November, 2021, 06:38 pm
FILE PHOTO: The front grill logo of a Ford pickup truck is seen in this photo taken in Carlsbad, California November 5, 2014 REUTERS/Mike Blake
FILE PHOTO: The front grill logo of a Ford pickup truck is seen in this photo taken in Carlsbad, California November 5, 2014 REUTERS/Mike Blake

Ford Motor Co said it plans to retire up to $5 billion in high-interest debt and tap into the fast-growing market for "green" bonds to help it finance new electric vehicles and expand credit to customers with lower scores.

Ultimately, the automaker aims to regain an investment grade rating for itself and Ford Credit, its captive financing arm, which in turn would lower the cost of future borrowing.

In a media briefing, Treasurer Dave Webb said the company is making a cash tender for "covid bonds" at 8% to 9.5% interest that it issued in April 2020, at the start of the global pandemic.

Ford expects initially to offer a $1 billion green bond at 3.5% to 4% interest, to replace some of the high-coupon bonds and to supplement the zero-interest convertible debt it issued earlier this year.

Part of the money will help fund the automaker's ambitious plan to convert a significant portion of its global production from fossil-fueled combustion engine vehicles to battery-powered electric vehicles.

The company has said it plans to spend at least $30 billion through 2025 to design, engineer and manufacture a broad range of EVs in North America, China and Europe.

Ford is a leading seller of full-size pickup trucks and SUVs -- hugely profitable combustion engine vehicles that are still popular with US customers.

A "sustainable financing framework" announced Thursday will provide Ford with access to new sources of capital, including investors supporting environmental, social and governance (ESG) initiatives.

New green bonds would enable Ford Credit to extend financing to customers with lower credit scores, but would not require them to buy electric or hybrid vehicles.

Thursday's announcement coincides with the United Nations Climate Change Conference (COP26) in Glasgow, Scotland and the fifth anniversary of the Paris Climate Agreement.

World+Biz

Ford Motor Co / Ford

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Photo: Bloomberg
    Adani rout hits $71 billion as fight with Hindenburg intensifies
  • Prime Minister Sheikh Hasina. Sketch: TBS
    Continued democracy helps rapid development: PM Hasina
  • Photo: Collected
    Zamzam Well water sale halted at Baitul Mukarram market

MOST VIEWED

  • Unilever’s global initiative Transform is working to build a platform that will help enterprises prosper during and after the pandemic. Photo: Reuters
    Unilever picks Dutch dairy chief as new CEO
  • Photo: Bloomberg
    Adani rout hits $71 billion as fight with Hindenburg intensifies
  • Photo: Collected
    Asian markets mixed as traders await rate decisions
  • The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave/
    Adani's $2.5 billion share sale faces crucial day after Indian rout
  • FILE PHOTO: Indian billionaire Gautam Adani speaks during an interview with Reuters at his office in the western Indian city of Ahmedabad April 2, 2014. Picture taken April 2, 2014. REUTERS/Amit Dave/File Photo
    India's Adani hits back at Hindenburg, insists made full disclosure
  • Getting gas to India will be even more costly than laying this pipe to China.Photographer: Andrey Rudakov/Bloomberg
    Russia can't replace the energy market Putin broke

Related News

  • Ford to sign off the GT with a 800hp track car
  • Ford stock has biggest daily drop since 2011 after inflation warning
  • Ford will challenge dealers to match Tesla's lower selling costs
  • Princess Diana's unique Ford Escort fetches $850,000 at auction
  • Ford cuts 3,000 jobs as it pivots to EVs, software

Features

Photo: Courtesy

The Hawkers: Where minimalism meets motifs

7h | Brands
TBS illustration

Where do Shariah-compliant mutual funds stand in Bangladesh

6h | Panorama
Sketch: TBS

A subsidy war without winners

6h | Panorama
Photo: Collected

Oppo Reno 8T first look revealed!

7h | Brands

More Videos from TBS

Youths at the invitation of TBS

Youths at the invitation of TBS

2h | TBS Graduates
Predicting next three years is tough- Kutubuddin Ahmed

Predicting next three years is tough- Kutubuddin Ahmed

3h | TBS Round Table
Pakistan plunges into economic mess

Pakistan plunges into economic mess

5h | TBS World
Shahrukh's 'Pathaan' has been making records ever since its release

Shahrukh's 'Pathaan' has been making records ever since its release

5h | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

3
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

4
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

5
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]