Toyota Financial Services (TFS) has issued its fifth Diversity & Inclusion (D&I) Bond promoting diversity on Wall Street. The $750 million bond offers minority-owned brokerages a lead underwriting opportunity and enabling diverse underwriting firms the ability to strengthen their experience working on high profile deals.
The two-year fixed rate D&I Bond not only serves as an integral component of Toyota’s comprehensive funding programme, but also enhances Toyota’s platform for diversity by placing a spotlight on high-quality Minority- and Women-Owned Business Enterprise (MWBE) certified firms. TFS’ fifth D&I Bond syndication builds upon its longstanding relationships with MWBE brokers by elevating their stature in the transaction, providing them an opportunity to take the lead underwriting role on a bond. It also strengthens the relationship these firms have with their own investors by expanding their access to a primary bond offering.
“The lead book-building managers in this transaction consisted entirely of African-American, Hispanic and women-owned broker dealers, each sharing Toyota’s commitment to giving back to the community,” confirmed TFS. They include Blaylock Van, LLC; CastleOak Securities, LP; Great Pacific Securities; Ramirez & Co, Inc; and Siebert Williams Shank. Furthermore, these firms have worked closely with TFS as advocates for diversity and inclusion within the industry through participation in industry events, panel presentations, and previously issued D&I Bonds.
REMARKABLE PERFORMANCE
“The corporate leadership Toyota Financial Services has demonstrated with their commitment to D&I issuances is unrivalled,” stated David Jones, President & CEO of CastleOak Securities. “This offering marks their fifth D&I issuance totalling $3 billion, and will stand out not only because of the utilisation 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 prioritising diversity can lead to remarkable performance.”
Adding to his comments, Suzanne Shank, President & CEO of Siebert Williams Shank, stated: “Siebert Williams Shank appreciates the opportunity to be a part of Toyota’s fifth D&I transaction. 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.”
PROMOTING DIVERSITY
Citigroup Global Markets (Citi) served as the lead stabilising bank in the transaction. Through their longstanding relationship and equal commitment to diversity programmes, TFS and Citi have expanded their efforts to promote diversity in the marketplace.
“Citi is excited to lead this bond offering for Toyota Financial Services,” stated 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.”
Toyota Financial Services has seen great success with its Diversity and Inclusion Bonds since it established “this issuance platform in 2013”, confirmed TFS President and CEO Mark Templin. “Executing another D&I transaction further diversifies our investor base, increasing the depth and resiliency of our US registered bond programme. And more importantly, it demonstrates Toyota’s ongoing commitment to diversity, inclusion, and equality as core values.”
DIVERSE INVESTOR BASE
In addition to capturing a more diverse investor base, TFS’ D&I platform also includes:
- 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 DiversityInc’s Top 50 Companies list annually
For the past six consecutive years, TFS has also been named one of Points of Light Foundation’s Civic 50, the most community-minded companies in the nation, and has also been recognised for its CSR initiatives and dedication to supporting and empowering communities.
Click here for more information on Toyota’s commitment to diversity and inclusion.
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