Ford Motor Company (NYSE: F) is trying to leverage a credit-market rally by selling green bonds. The company has so far sold debt worth about $1.75 billion that is to mature in ten years and yield about 6.1℅. This debt sale is part of Ford’s green bond, which aims to spend $50 billion annually and make 2 million electric cars annually by 2026.
Ford will use its proceeds to finance its battery-electric car portfolio and clean transportation projects. The company expects to allocate the funds by the end of 2023 fully. Analysts think the company could tap into the bond market before June on its next round of maturities.
Ford had its green bond debut in 2021
This is the company’s first junk-rated green sale since its debut in green bond in 2021. Barclay’s is in charge of the latest deal. The news comes after the U.S Treasury Department released a fact sheet and guidance on how to make electric vehicles more affordable for Americans.
Ford Electric vehicle initiatives come when more consumers try to make environmentally conscious decisions. More car makers are now transitioning to electric vehicles to take advantage of the emerging market while protecting the environment.
Ford hopes to become a leader in the electric vehicle space
Ford has put about $22 billion into its electric initiative as part of its move to lead electrification in areas where it is strong. As a result, the company has begun electrifying some of its best sellers, including the Ford F-150, Mustang, and Transit. Ford strives to electrify these cars while maintaining the qualities that made them most popular, including their performance, productivity, and capability. The company also hopes to ensure customers get a reasonable price for the vehicles with a low cost of ownership.
Ford offers a home charging solution for electric cars and the most significant public charging network in North America. The network has about 63,000 charging plugs and is expected to increase. It also offers charging solutions like cloud navigation that direct drivers to areas where they can charge their cars.
Ford hopes to use its strategy to reduce its carbon footprint significantly by 2050. So far, it is the only U.S carmaker committed to fully transitioning to electric vehicles and achieving carbon neutrality.
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