Ford has entered debt markets to raise some US$2.8bn for investment spending in advanced automotive technologies.
Bloomberg said that Ford's move to sell 10-year and 30-year bonds on Monday was the firm's first foray into borrowing in four years. The report said investors put in around US$8.7bn of orders for the bonds, letting Ford se6ll more than the US$2bn it initially anticipated. Ford's last automotive issue was for US$2bn in January 2013.
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Ford is aiming to transform itself into a mobility services company as well as a manufacturer of vehicles. It has also said that it will take a hit on its bottom line due to the costs being incurred on developing advanced technologies such as electrification and autonomous drive.
Ford told Bloomberg that the company is taking advantage of favourable market conditions to issue long-term debt to raise capital for 'general corporate purposes'.
Ford CFO Bob Shanks told a Ford investor audience in September that the company anticipates a dip to profits in 2017 as the company ramps up its investment in 'emerging opportunities', especially electrification.
Ford investment push will cause profit dip in 2017
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