May 7, 2021
At the base of Mount Fuji in Japan, the world’s largest automaker is currently building a prototype smart city which will feature
digitally connected buildings and vehicles – all powered by hydrogen fuels cells. Known as the “Woven City,” the 175-acre site
will act as a laboratory for Toyota in areas such as automated driving, personal mobility, robotics, and artificial intelligence,
supporting Toyota’s shift from an automobile manufacturer to a mobility company.
The Woven City project is the centerpiece of Toyota’s sustainability agenda, which recently received financing in a $4.85
billion deal including $2.75 billion dollar-dominated bonds led by J.P. Morgan. The firm served as a lead-left book runner
and structuring agent in the client’s first sustainability bond offering.
The ‘Woven Planet Bonds’ issuance totaled USD2.75 billion in 3 ($1.25 billion), 5 ($1billion), and 10-year ($500 million)
tenors, including JPY230billion in Yen-dominated bonds for domestic institutional investors and retail investors. To be
directed towards projects that contribute to the U.N. Sustainable Development Goals, the issuance is the largest ever
dollar-denominated sustainable bond in the automobile sector and attracted interest from global investors including ESG dedicated funds. Performance in the secondary market has been solid.
The Woven Planet initiative represents Toyota’s determination of "doing things for someone other than ourselves," a credo
they have safeguarded and nurtured since their founding in 1937.
“Toyota Motors’ advanced technology and strategies, backed by its financial strength, attracted international institutional
interest. The company has steadily strengthened its ties with foreign capital markets by issuing dollar-denominated bonds
in 2018 and 2019, and, I believe, this sustainable bond issuance will generate further support from global investors,” said
Itaru Kato, J.P. Morgan lead coverage banker for Toyota.
Proceeds from the deal will be used across Toyota’s social projects, such as the development and manufacturing of
advanced safety and driving support technologies, including ‘Toyota Safety Sense’, and green projects to accelerate the
reduction of CO2 emissions in vehicles, plants and offices.
"J.P. Morgan has served as lead bookrunner in three consecutive deals for Toyota – a large-scale dollar-denominated
issuance, its first sustainable bond and the largest Yankee ESG related USD bond offering. We are proud of the important
role our team played in this deal,” commented Steve Rinoie, J.P. Morgan senior country officer in Japan.
“The strong response from global investors shows that Toyota's sustainable development goals addressing environmental
and social issues with safety technology progress has gained the understanding and support of the market,“ stated
Masanori Kato, J.P. Morgan head of Debt Capital Markets for Japan.