Everence and Praxis commit $3.5 million to auto industry's first-ever asset-backed green bond

Impact bonds |

Bond purchase supports consumer loans and leases through Toyota Financial Services

Everence and the Praxis Intermediate Income Fund have purchased a total of $3.5 million in the auto industry’s first-ever asset-backed green bond through Toyota Financial Services.

Issued in March 2014, the $1.75 billion Toyota Financial Services green bond offering (which was increased from its original $1.25 billion due to strong investor demand) is a momentous offering in the asset-backed securities market, as the first green bond from an auto finance company. Proceeds of the bond will fund new retail finance contracts and lease contracts for qualified Toyota and Lexus hybrid or alternative fuel powertrain vehicles.

“This green bond is really the first of its kind for the auto industry, helping people get loans for energy efficient vehicles,” explained Benjamin Bailey, Co-Manager of the Praxis Intermediate Income Fund. “It fits well into our goal to purchase investments that make both social and financial sense, and commitment to support renewable energy projects.”

“At Everence and Praxis, we are just as concerned about the impact our investments have on others as we are about the financial returns we receive,” said David Gautsche, President of Praxis Mutual Funds. “We’re excited about this inaugural asset-backed green bond through Toyota Financial Services, and are glad to be part of it.”

Everence and Praxis Mutual Funds have long been leaders in green bond investments. The Praxis Intermediate Income Fund has a history of purchasing bonds that make a social impact. In 2009, the Praxis Intermediate Income Fund became one of the first socially responsible investors to purchase a U.S. dollar World Bank green bond.

To-date, high social impact investments now make up more than 10 percent of the Praxis Intermediate Income Fund. Beyond auto industry asset-backed securities, market rate investments also include bonds in solar and wind installations, vaccines, medical research and community infrastructure. The Fund’s high social impact investments also include community development investments, which benefit disadvantaged communities in the U.S. and around the world.

About Praxis Mutual Funds and Everence Financial

Praxis Mutual Funds, advised by Everence Capital Management, is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with faith values. To learn more, visit praxismutualfunds.com.

Everence helps individuals, organizations and congregations integrate finances with faith through a national team of advisors and representatives. Everence offers banking, insurance and financial services with community benefits and stewardship education. To learn more, visit everence.com or call (800) 348-7468.

Disclosure

Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.

As of March 31, 2014, the Praxis Intermediate Income Fund had invested 0.52 percent of its assets in Toyota Auto Receives Owner Trust 2014-A A3. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.