<iframe src="https://www.googletagmanager.com/ns.html?id=GTM-PHTV9K7" height="0" width="0" style="display:none;visibility:hidden">
Loading
Skip to Main Content
Product cover image for The Ford Motor Company Green Bond

The Ford Motor Company Green Bond

Gandhi, Vikram; Barnett, James

Product #:823069
Supplier:Harvard Business School
Discipline:Finance
Setting:United States, 2022
Details:Case (PDF) • 20 pages • 2023-01-24

Subjects:

Business ethicsBusiness law and ethicsFinance and investing

Industries:

Financial service sector

Geography:

United StatesNorth America
Your Price:$11.64

Purchase this material with a free Educator Account and enjoy more benefits:

  • Free Educator Copy
  • Free Teaching Notes
  • Build your coursepack
  • Discounted academic price

In November 2021, Ford Motor Company offered a $2.5 billion green bond to finance investments in electrification. Issuance of green bonds significantly increased into the 2020s, and to date, the Ford Motor Company green bond was the largest such bond offered by a non-financial corporate institution. How would investors assess the attractiveness of the bond?

Learning Objectives

1. Review the key terms of the Ford Green Bond and compare them to the Ford bonds trading in the market at the time. Would you invest in the Green Bond? 2. Compare the Green Bond structure with the Sustainability Linked structure of the credit facility. As an investor which structure do you prefer and why ? 3. What are the advantages and disadvantages to the two structures from Ford's perspective? 4. What role should fixed income investors play in influencing corporate strategy with respect to climate change and why?
Loading
Case Study: The Ford Motor Company Green Bond (English version) | Ivey Publishing