A press release entitled, "Toyota Motor Credit Corporation (TMCC) Issues First Secured Overnight Financing Rate (SOFR) Commercial Paper Transaction," tells us that, "Toyota Motor Credit Corporation (TMCC) has issued its first Secured Overnight Financing Rate (SOFR) commercial paper transaction, demonstrating the company's commitment to innovation, and advancing its reputation as an industry leader. The three-month USD-denominated issuance raised USD 500 million from institutional investors, and represents the first non-bank SOFR-linked commercial paper transaction in the USD market." It explains, "As the financial markets' dependence on the London Interbank Offered Rate (LIBOR) declines ahead of its discontinuance post-2021, support for the SOFR as an alternative reference rate to back U.S. dollar-backed derivatives and loans continues to grow." Nicholas Ro, Treasury National Manager of Sales & Trading for Toyota Financial Services, comments, "Given TMCC's position as the largest non-bank direct U.S. commercial paper program issuer, we felt it was important to be involved early on in working with our investors.... In order to successfully transition from LlBOR to SOFR, we need to listen to the 'voice of our customers.' Gathering investor feedback allows us to better serve our investors, and understand their views on the new reference rate.... We appreciate the trust and support we have received from our investors and external product partners in making our initial SOFR transaction a success." The release adds, "TMCC is pleased with its first SOFR floating-rate commercial paper issuance, and expects it to influence positive change in an ever-evolving industry.... Having previously offered Diversity & Inclusion Bonds, as well as the auto industry's first-ever Green Bond, TMCC has once again demonstrated its ability to innovate by bringing its SOFR floating-rate commercial paper transaction to the short-term capital markets. TMCC issues USD 100 billion in U.S. commercial paper each year, and is the largest non-bank direct issuer of U.S. commercial paper." (See also our Oct. 10 Link of the Day, "Invesco's Mandeville Explains SOFR," our Aug. 23, LOTD, "FT on Credit Suisse SOFR Floater," and our Aug. 16 LOTD, "Wells on World Bank SOFR Floater." Note too that Toyota's Ro will be speaking (Nov. 6) at next week's AFP Annual Conference in Chicago.)

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