Toyota Motor Credit has entered a swap with Deutsche Bank to hedge a seven-year note linked to the Standard & Poor's 500. Toyota priced USD40 million of the medium-term notes for funding and is seeking to lure investors by offering both participation in the upside of the index and income. The note pays investors 0.5% per annum, and offers 103.58% of the percentage increase in the index over the seven-year term. The investor's principal is guaranteed in the event the index declines in value. Officials at Toyota and Deutsche Bank could not be reached by press time.
Toyota has issued a string of medium-term notes referencing foreign exchange and interest rates and ventured into commodities at the end of the summer (DW, 9/8).
