Case Study: Toyota Financial Services achieves US$2.9m in funding savings and expanded US commercial paper access with ION

US commercial paper programmes realise savings of US$2.9m in basis arbitrage

Toyota Financial Services faced a sudden funding risk after proposed US Section 385 rules threatened its ability to use intercompany lending from Toyota Motor Credit Corporation, increasing reliance on volatile European capital markets and raising refinancing concerns. To build resilience, Toyota Financial Services worked with ION, using Wallstreet Suite (an ION Treasury solution) alongside Integrity and Bloomberg to design contingency funding processes and tech-enabled workflows.

The solution was to launch US commercial paper programmes for TFA and TMFNL in April 2017, with Wallstreet Suite and Integrity automating fixed and floating rate instruments, payments and global account coordination. Since launch TFA has issued US$1.6bn and TMFNL US$2.2bn, delivering combined annual savings of US$2.9m and materially lowering refinancing risk; ION’s technology was a key enabler of these measurable results.

Toyota Financial Services

Norman Brem

Senior Analyst