<p>Ford Motor Co said it plans to retire up to $5 billion in high-interest debt and tap into the fast-growing market for "green" bonds to help it finance new electric vehicles and expand credit to customers with lower scores.</p>.<p>Ultimately, the automaker aims to regain an investment grade rating for itself and Ford Credit, its captive financing arm, which in turn would lower the cost of future borrowing.</p>.<p>In a media briefing, Treasurer Dave Webb said the company is making a cash tender for "covid bonds" at 8% to 9.5% interest that it issued in April 2020, at the start of the global pandemic.</p>.<p>Ford expects initially to offer a $1 billion green bond at 3.5% to 4% interest, to replace some of the high-coupon bonds and to supplement the zero-interest convertible debt it issued earlier this year.</p>.<p>Part of the money will help fund the automaker's ambitious plan to convert a significant portion of its global production from fossil-fueled combustion engine vehicles to battery-powered electric vehicles.</p>.<p>The company has said it plans to spend at least $30 billion through 2025 to design, engineer and manufacture a broad range of EVs in North America, China and Europe.</p>.<p>Ford is a leading seller of full-size pickup trucks and SUVs -- hugely profitable combustion engine vehicles that are still popular with US customers.</p>.<p>A "sustainable financing framework" announced Thursday will provide Ford with access to new sources of capital, including investors supporting environmental, social and governance (ESG) initiatives.</p>.<p>New green bonds would enable Ford Credit to extend financing to customers with lower credit scores, but would not require them to buy electric or hybrid vehicles.</p>.<p>Thursday's announcement coincides with the United Nations Climate Change Conference (COP26) in Glasgow, Scotland and the fifth anniversary of the Paris Climate Agreement. </p>
<p>Ford Motor Co said it plans to retire up to $5 billion in high-interest debt and tap into the fast-growing market for "green" bonds to help it finance new electric vehicles and expand credit to customers with lower scores.</p>.<p>Ultimately, the automaker aims to regain an investment grade rating for itself and Ford Credit, its captive financing arm, which in turn would lower the cost of future borrowing.</p>.<p>In a media briefing, Treasurer Dave Webb said the company is making a cash tender for "covid bonds" at 8% to 9.5% interest that it issued in April 2020, at the start of the global pandemic.</p>.<p>Ford expects initially to offer a $1 billion green bond at 3.5% to 4% interest, to replace some of the high-coupon bonds and to supplement the zero-interest convertible debt it issued earlier this year.</p>.<p>Part of the money will help fund the automaker's ambitious plan to convert a significant portion of its global production from fossil-fueled combustion engine vehicles to battery-powered electric vehicles.</p>.<p>The company has said it plans to spend at least $30 billion through 2025 to design, engineer and manufacture a broad range of EVs in North America, China and Europe.</p>.<p>Ford is a leading seller of full-size pickup trucks and SUVs -- hugely profitable combustion engine vehicles that are still popular with US customers.</p>.<p>A "sustainable financing framework" announced Thursday will provide Ford with access to new sources of capital, including investors supporting environmental, social and governance (ESG) initiatives.</p>.<p>New green bonds would enable Ford Credit to extend financing to customers with lower credit scores, but would not require them to buy electric or hybrid vehicles.</p>.<p>Thursday's announcement coincides with the United Nations Climate Change Conference (COP26) in Glasgow, Scotland and the fifth anniversary of the Paris Climate Agreement. </p>