Bloomberg News

Toyota’s U.S. Finance Unit Sells $1 Billion of Five-Year Bonds

May 17, 2012

Toyota Motor Corp. (7203), the maker of the world’s best-selling gasoline-electric vehicle, sold $1 billion of five-year debt through its U.S. finance unit.

Toyota Motor Credit Corp. issued the 1.75 percent senior unsecured notes to yield 110 basis points more than similar- maturity Treasuries, according to data compiled by Bloomberg. The bonds are expected to be rated Aa3 by Moody’s Investors Service, its fourth-highest grade. Proceeds from the sale will be used for general corporate purposes, according to a person familiar with the offering who asked not to be identified, citing a lack of authorization to speak publicly.

Toyota last issued at least $1 billion of dollar- denominated debt in February, when the Toyota City, Japan-based maker of the Prius hybrid vehicle sold $1.25 billion of 1 percent notes maturing in 2015, Bloomberg data show. The finance unit also received a $5 billion loan for general corporate purposes March 1, according to a regulatory filing.

Bank of America Corp., Barclays Plc, HSBC Holdings Plc, Royal Bank of Canada and UBS AG managed the sale.

To contact the reporter on this story: Charles Mead in New York at

To contact the editor responsible for this story: Alan Goldstein at

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