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HBE Cabrera Capital Markets helps underwrite $350M Toyota bond issue



Chicago-based investment bank Cabrera Capital Markets – a Hispanic Business Enterprise (HBE) – is one of five institutions selected by Toyota Financial Services as lead underwriters on the auto maker’s new $350 million Diversity & Inclusion bond issue.
Toyota Financial Services (TFS) announced the deal on Sept. 19, noting that its Diversity & Inclusion Bond is a key component of the company’s comprehensive funding program. TFS issued its first Diversity & Inclusion Bond in January 2013 to positive response from investors, banks and other issuers. This second issuance builds on the program’s success and highlights TFS’ corporate initiatives, supplementing its focus on diversity inside and outside the workplace.
Cabrera Capital Markets shared lead underwriting duties with minority-owned firms CastleOak Securities LP; Drexel Hamilton; Muriel Siebert & Co., and Toussaint Capital Partners. TFS said it anticipates similar transactions in the future, which will strengthen Toyota’s emphasis on diversity and inclusion.
“We want to thank Toyota Motors for allowing Cabrera Capital to participate as a Joint Lead Book runner on their recent $350 million bond issue,” said Cabrera CEO Martin Cabrera. “Toyota has always been committed to diversity and inclusion and has been a great partner of the U.S. Hispanic Chamber of Commerce (USHCC). It has been a great experience working with Toyota’s team, and we look forward to continue working with them in the future.”
Since its launch, the Diversity and Inclusion Bond has allowed TFS to diversify its investor base, and it provided opportunities for minority-owned firms to strengthen strategic client relationships and increase participation in high-profile deals. TFS has worked with other Hispanic-owned firms in the past, including Ramirez & Co., which served as a lead runner on past transactions.
“The USHCC is proud of Toyota’s unparalleled leadership on corporate diversity and inclusion,” said USHCC President and CEO Javier Palomarez. “TFS’ Diversity & Inclusion Bond is a game changer, which proves once again that diversifying your supply chain is a sound and profitable business practice. Cabrera Capital Markets is a longstanding partner of the USHCC, and their stellar track record of successful management of multimillion-dollar transactions for top-tier clients makes this firm a natural choice as one of Toyota’s leading partners for TFS’ latest endeavor.”
TFS’ commitment to diversity and inclusion – including philanthropic endeavors, associate training programs and other diversity initiatives – has led to its repeated recognition by DiversityInc, Black Enterprise, Hispanic Business, and the Human Rights Campaign.
Citi, the transaction’s stabilizing lead bank, shares a long-standing relationship with TFS and is equally committed to diversity. “Citi commends Toyota for its leadership in promoting diversity and inclusion throughout the industry, which is expanding the experience of underwriters and the depth of investors,” said Peter Aherne, Head of North America Capital Markets, Syndicate and New Products at Citi. “We are proud to again collaborate with Toyota to bring diversity and inclusion bonds to the market.”
Love & Long LLP, a minority- and woman-owned law firm, is acting as co-issuer’s counsel along with Davis Polk & Wardwell LLP. O’Melveny & Myers LLP is serving as underwriters’ counsel.
Cabrera Capital Markets is no stranger to big deals. The investment bank served as one of the underwriters for Facebook’s initial public offering in May 2012. Characterized by the media as a “cultural touchstone”, the IPO was among the biggest ever in the tech sector and the largest in Internet history. Facebook’s market capitalization topped $100 billion in August 2013 and was just shy of $120 billion in early October.
“I don’t think there is going to be a larger IPO for a while, but I do think there are a lot of companies we are helping to get to the point where they can have an IPO, and that is something we take pride in,” Cabrera told NegociosNow following the social media giant’s IPO. “We help a lot of companies grow their business, and it is even more meaningful when they are Latino businesses. We are helping them get to the next level because we know that as those companies succeed, they are being viewe