Green certainly can have multiple meanings at Toyota Financial Services (TFS).

The captive recently issued its latest unsecured Green Bond, reinforcing the finance company’s commitment to the sale of environmentally friendly vehicles. Officials highlighted proceeds from the $750 million bond will be used to fund the acquisition of new retail installment contracts and operating lease contracts financing Toyota and Lexus vehicles that meet specific clean air criteria, including powertrain, fuel efficiency and emissions.

The company noted there are currently seven vehicle models in the Toyota and Lexus lineup that qualify. With this latest iteration of its Green Bond program, Toyota increased the vehicle eligibility requirements from 35 miles per gallon to 40 miles per gallon.

TFS insisted that it revolutionized the Green Bond market by introducing the auto industry’s first-ever Asset-Backed Green Bond in 2014. This issuance marks the fifth Green Bond the company has issued, and its first ever unsecured Green Bond offered in U.S. dollars.

“Green Bonds are an important component of TFS’ diversified funding program and serve to enhance Toyota’s extensive commitment to environmental causes,” the company said in a news release.

The TFS Green Bond program is unique and enhances Toyota’s reputation for leadership in green innovation across industries. The Toyota Corolla, which includes the Corolla Hybrid, was named the 2020 Green Car of the Year by Green Car Journal. Toyota has sold more than 3.6 million hybrid vehicles in the United States, and more than 13.5 million worldwide.

Since 1997, Toyota hybrids have reduced CO2 emissions by 108 million tons versus comparable gasoline-powered vehicles, according to the company.

“We provide the financing and leasing solutions that enable customers to get into the Toyota or Lexus of their choice,” TFS chief financial officer Scott Cooke said. “Our Green Bonds are an important tool that TFS uses to fund the sale of environmentally friendly vehicles while providing an attractive option for sustainability investors.”

TFS said it has committed to use the proceeds of the Green Bond toward the acquisition of new retail installment contracts and operating lease contracts financing new Toyota and Lexus vehicles that meet each of the three eligibility criteria:

— Possess a gasoline-electric hybrid or alternative fuel powertrain;

— Achieve a minimum of 40 highway and city miles per gallon (MPG or MPG equivalent)

— Receive a Smog Rating of 7 or better (where 10 is the cleanest), as determined by the United States Environmental Protection A agency for the purchase of a vehicle in California.

Qualifying vehicles include the Toyota Avalon Hybrid, Toyota Camry Hybrid, Toyota Corolla Hybrid, Toyota Mirai, Toyota Prius, Toyota Prius Prime, and the Lexus ES 300h.

The TFS Green Bond program was reviewed by Sustainalytics, a leading global provider of environmental, social and corporate governance research, ratings and analytics.

Citigroup and Credit Agricole CIB advised TFS on the green structuring considerations for the offering.  BNP, JP Morgan and Mizuho served as additional joint lead managers for the transaction.

For more information about Toyota’s commitment to the environment, visit www.toyota.com/usa/environmentreport. For more information on TFS’ capital markets programs, visit www.toyotafinancial.com.