Toyota price ABS Green Bond


Toyota continues its commitment to fund climate-supporting projects and other environmental sustainability initiatives with the Toyota Auto Receivables 2021-B Owner Trust.

Also known as TAOT 2021-B, the $ 1.2 billion transaction is Toyota Motor Credit Corporation’s fourth issuance through its ABS Green Bond program. Toyota announces that it launched the automotive industry’s first asset-backed green bond in 2014.

A pool of fixed-rate retail installment contracts on new and used cars, crossover utility vehicles, pickup trucks and sport utility vehicles secures TAOT 2021-B. Toyota is behind the auto finance in the original pool, according to an initial assessment by FitchRatings.

The transaction references two potential pools to be securitized, one for $ 1.3 billion, which will underpin the $ 1.2 billion notes, and a larger one of $ 1.7 billion, which will support 1, $ 6 billion in certificates.

One of the main credit considerations is that borrowers appear to have strong credit, starting with a weighted average FICO score of 767. The pool also has a lower level of long term loans of 50.6%.

Overall, coronavirus concerns may decrease, but are worth watching. In a baseline scenario, Fitch assumes that the COVID-19-induced global recession in the first half of 2020 and the rebound in economic activity in the second half of 2020 could give way to a slower recovery trajectory in 2021. For l Future, Fitch says he believes TMCC’s business continuity plan is sufficient to minimize disruption to collections.

Citigroup Global Markets is the primary underwriter of the transaction, which includes four categories of Fitch rated notes.

The $ 244 million Class A-1 notes are rated “F1 + sf”; the Class A-2 and Class A-3 notes, both valued at $ 410 million, are rated “AAA”; the $ 106 million A-4 Notes are also rated “AAA”.

TAOT 2021-B is also quite diverse geographically. California accounts for 25.7% of pool funding, while Texas accounts for 12.9%. Other states with high exposures accounted for less than five percent of the overall deal.

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