Ford Motor mentioned Thursday it would acquire back up to $five billion of its significant-yield junk bonds as it restructures its stability sheet to fork out for motor vehicle electrification and other sustainable jobs.

Ford shares rose four.2% to $19.forty two on information of the repurchase, which involves a lot of the $eight billion in bonds the business issued at the commence of the coronavirus pandemic at lofty yields of in between eight.five% and nine.625%.

“We imagine it’s the time to aggressively restructure the stability sheet, reduce our interest expenses, and definitely apparent the decks for 2022 and past,” Ford Treasurer David Webb advised reporters. “The steps that we’re having listed here on the stability sheet further more guidance that effort and intent. We imagine they, undoubtedly, need to be considered as a credit beneficial.”

Ford’s credit rating has been beneath expenditure-quality standing due to the fact March 2020.

The business also mentioned it experienced introduced the vehicle industry’s first “sustainable financing framework” to further more strengthen its stability sheet and fiscal flexibility, and return its credit rating to expenditure quality.

“Winning firms are financially nutritious and lead in sustainability – it’s not a option, they count on just about every other,” CFO John Lawler mentioned in a information release. “We’re yet again putting our revenue in which our mouth is, prioritizing and allocating money to environmental and social initiatives that are fantastic for persons, fantastic for the earth, and fantastic for Ford.”

The goals of the new framework include growing electrical motor vehicle technologies and charging infrastructure to clear away obstructions to adoption and enhance the consumer knowledge, and growing EV and battery production to lower emissions.

“It’s a shift for Ford, such as its Ford Credit history fiscal subsidiary, as environmental, social and governance, or ESG, investing gets a lot more well-known and a thing to consider of traders,” CNBC documented.

Ford expects to fund the bond buyback with income on hand, which totaled about $31 billion to stop the 3rd quarter. Webb declined to speculate on when the automaker expects to return to expenditure quality but mentioned it is “intent on having there as immediately as we quite possibly can.”

David Webb, electrical motor vehicles, Ford Motor, John Lawler, junk bonds, repurchase, sustainability