Tesla (TSLA) Issues $499 Million Bond Backed by Solar Equipment

Tesla (TSLA, Financial) has issued $499 million in bonds backed by loans from solar equipment. The underwriting process for five tranches of these corporate bonds was initiated by Deutsche Bank and completed within the week. Fitch Ratings has assigned an investment-grade rating to all five tranches, noting that the credit ratings of the clients accepting this financing are generally high.

Insiders revealed that this bond issue by Tesla was oversubscribed, with an interest rate set at 4.83%. This is not Tesla's first venture into asset-backed securities (ABS) backed by solar assets; the company previously issued bonds in 2016 to finance the acquisition of SolarCity.

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