A new agreement between Toyota Capital and financial advisors, investment banks and private equity firms is poised to bring a record $1 billion in financing for Toyota’s capital investments in 2019.
Toyota Capital plans to use the funds to invest in Toyota’s global operations, including operations in the U.S. and China.
The Toyota Investment Alliance, which includes Goldman Sachs, is overseeing the deal.
Toyota will invest up to $500 million in the two companies, which have been underwriting for nearly two years.
Toyota is currently planning to expand its investment in both companies and is set to announce an initial public offering of its shareholding in 2019 with an estimated value of $6.4 billion, according to a statement from Toyota Capital.
“We’re delighted to see Toyota invest in both Toyota and Toyota Motor to grow our business and to grow jobs,” said Ken Chenault, chief executive officer of Toyota Motor.
“As we work to meet the challenges of the global economy, we can count on Toyota Capital to deliver our capital plan with long-term value.”
Toyota Capital will use the financing to help Toyota build more vehicles and expand its operations in areas such as robotics, manufacturing, advanced engineering, and robotics and autonomous vehicle technology.
Toyota also plans to spend $5 billion on investments in its global operations.
“Toyota is building an exciting and sustainable future for both Toyota Capital Partners and Toyota,” said Peter A. Gillett, the head of Toyota Capital Investment Alliance.
“The financial strength of both companies, combined with our ability to accelerate and leverage their assets and expertise, will create a powerful combination that is sure to accelerate growth and create jobs for millions of Americans.”