General Motors may already have secured the funding needed for the potential $51 million investment in new EV component production equipment it is considering at in its Bedford casting facility. The company announced on July 28 that it has launched an offering of senior unsecured fixed rate notes and it will use money from the sale of the notes to “finance or refinance” green projects such as electric vehicles or other projects in its Sustainable Finance Framework.
GM’s Sustainable Finance Framework includes its zero-emission vehicles, battery technology, battery storage and battery management systems, fuel cell technology, charging infrastructure and other green initiatives such as making EVs and self-driving taxis accessible to all income levels and communities.
According to the Detroit Free Press, GM issued a press statement saying it was announcing the pricing of two series of senior unsecured fixed rate notes for a total of $2.25 billion. The notes include $1 billion of 5.40% notes due in 2029 and $1.25 billion of 5.60% notes due in 2032.
In GM’s recent earnings call with analysts, CFO Paul Jacobson alluded to GM’s refinancing plan saying GM is, “finalizing the deals of GM’s Sustainable Finance Framework, which will unlock options to help us align our balance sheet with our ESG (Environmental, Social and Governance) strategy.”
GM’s ESG strategy consists of its promise to be a carbon-neutral company by 2040 and develop socially responsible programs to assure everyone has access to clean transportation. In May, GM also asked its suppliers to sign a pledge committing to the same goals.
Elements of the 2022 Sustainable Finance Framework specifically mention the implementation of a capital-efficient EV manufacturing plan that leverages the Company’s talent and scale, including converting existing assembly plants, such as the facility at Bedford, that support internal combustion engine vehicles to EV production.