MHI to Issue The Second Series of Transition Bonds to Help Move Towards “Net Zero” by 2040
･ MHI decided to issue the second series of transition bonds for 2 consecutive years to promote the company’s energy transition initiatives
･ MHI, as a leading company in the decarbonization field with an extensive track record and ongoing development of advanced technologies, is accelerating the promotion of projects that contribute to carbon neutrality of Japan and the world
Tokyo, July 28, 2023 – Mitsubishi Heavy Industries, Ltd. (MHI) submitted a revised shelf registration statement to the Director-General of the Kanto Local Finance Bureau today in preparation for its planned issuance of transition bonds via public offering in the Japanese bond market.
MHI was selected as a model example for the “2021 Climate Transition Finance Model Projects” being supported by the Ministry of Economy, Trade and Industry (METI) in March 2022, and issued its first transition bonds in September 2022. This will be our second issuance of transition bonds
The Mitsubishi Heavy Industries Group has defined two growth areas: “Energy Transition”, which aims to decarbonize the energy supply side, and “Smart Infrastructure”, which targets to realize the decarbonization, and promote the energy efficiency, manpower saving in the energy demand side. As part of the financing necessary for focusing on businesses in these areas, and promote decarbonization, electrification and intelligence in its existing businesses, MHI is utilizing ESG finance such as transition bonds and green bonds.
By issuing the bonds, MHI will diversify its financing methods, promote its energy transition initiatives, and contribute to realizing a Carbon Neutral society.
Outline of the Issuance
| Bond name (expected) | Mitsubishi Heavy Industries, Ltd. 42nd Series Unsecured Bond (with inter-bond pari passu clause) he 2nd Series of Mitsubishi Heavy Industries Transition Bonds) |
|---|---|
| Maturity (expected) | 5 years |
| Issue amount (expected) | JPY 10 billion |
| Issue timing (expected) | Late August 2023 |
| Use of proceeds (expected) | New investments and refinancing of existing investments relating to eligible businesses or projects (decarbonize existing infrastructure, build hydrogen solutions ecosystem, build a CO2 solutions ecosystem) |
| Lead managers | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Mizuho Securities Co., Ltd. Nomura Securities Co., Ltd. Daiwa Securities Co., Ltd. SMBC Nikko Securities Inc. BofA Securities Japan Co., Ltd. Goldman Sachs Japan Co., Ltd. |
| Second party opinion | DNV Business Assurance Japan K.K. |
| Evaluation of the transition bond’s suitability | The Company has received a second party opinion (SPO) from DNV Business Assurance Japan K.K., a third-party institution, attesting to the transition bond’s conformity with: ICMA Green Bond Principles 2021; Ministry of the Environment Japan Green Bond Guidelines 2020; LMA, APLMA and LSTA Green Loan Principles; Ministry of the Environment Japan Green Loan and Sustainability Linked Loan Guidelines 2020; ICMA Climate Transition Finance Handbook 2020; and Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment Japan Basic Guidelines on Climate Transition Finance (May 2021). |