General Motors has sold its first-ever green bonds to fund the continued electrification of its line-up.
According to sources familiar with the matter, the automaker priced $2.25 billion of green bonds in two parts.
The longest portion of the offering is 10-year security which yields 2.95 per cent above comparable Treasuries.
Initially, GM was rumoured to have aimed for 3.2 per cent, but it looks like the company adjusted this before selling.
According to Bloomberg, this is the third-largest green deal from a US corporation outside of the financial sector.
GM is expecting to allocate the net proceeds to continue to fund its electric transition.
This includes investments in the design, development and manufacturing of clean transportation technology.
It could also be used to enable solutions such as EV chargers, battery packs etc.
This is not the first time an automaker has tapped the sustainable debt market to fund a transition to electric vehicles.
In November 2021, Ford tapped a green bond and raised $2.5 billion.
While in March 2022, Nissan also utilised green bonds to raise $2.75 billion.
As per the source, the green bond sale was managed by Barclays Plc, BNP Paribas SA, Bank of America Corp., Citigroup Inc., Credit Agricole SA, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley.