Toyota Motor Corporation (TMC) announced today plans to issue up to 500 billion yen (US$4.7 billion) “Woven Planet Bonds,” forming part of the company’s transformation from an automobile manufacturing company into a mobility company.

The new sustainable financing instruments are aimed at funding projects that contribute to UN Sustainable Development Goals (SDGs), forming part of the company’s broader sustainability efforts. In a press release, the company explained the origins of the name of the new bonds:

“The “Woven” of Woven Planet stems from the founding spirit that Sakichi Toyoda―Toyota Group’s founder―had of “wanting to help his mother and others” when he invented the Toyoda automatic loom that led to the establishment of TMC. It also means to “weave” together the “streets” that are necessary to support the development and implementation of autonomous driving and mobility services. TMC will aim to create new services and products by connecting goods, information, and cities through software and connected technology centered on people.

“Meanwhile, the “Planet” of Woven Planet comes from the ambition to leave a beautiful home for the next generation, which embodies the global perspective that Earth is our “home planet”, similar to our hometown or home country, and the people that live on this planet contribute to the future. Instead of conflicts, if each individual were united with the simple idea of “wanting to use one’s strength for others”, TMC believes this would contribute to achievement of the SDGs.”

TMC aims to issue both yen denominated bonds to individual investors, and yen and foreign currency denominated bonds to institutional investors. The individual investor bonds (up 100 billion yen), which won’t fall under the Sustainability Bond Guidelines of the International Capital Markets Association (ICMA) are targeted for financing a wide range of SDG initiatives, such as community development and verification testing of various advanced technologies in Woven City, a TMC initiative for the realization of a mobility society of the future. The institutional investor bonds, which will comply with the ICMA’s Sustainability Bond Guidelines, will fund projects including R&D into advanced safety technology, mobility opportunities for mobility-challenged people, reduction of CO2 emissions through vehicle electrification initiatives, and emissions reduction efforts at plants and offices.

In its statement, TMC said:

“TMC’s Woven Planet initiatives represent the company’s determination to move step by step toward the future in the Toyota Philosophy spirit of “doing things for someone other than ourselves”, which TMC has safeguarded and nurtured since its founding, and the SDG spirit of “leaving no one behind”.”