Notice on the issuance of "Hitachi Zosen Green Bond"
Sep 29, 2021
Hitachi Zosen Corporation plans to issue "Hitachi Zosen Green Bond" through the public offering in the Japanese market. It will be our Company’s second green bond issuance following issuance of our first green bond in September 2018.
Green Bonds are issued by companies, municipalities, or other organizations to raise funds for Green Projects that produce environmental benefits, such as renewable energy projects, energy-efficient building construction and renovation, and prevention and management of environmental pollution.
Purpose of issuing green bonds
As society moves toward the achievement of the SDGs (Sustainable Development Goals) adopted at the United Nations Summit and a recycling society, ｗe position the business of producing clean energy as one of our core businesses.
The funds raised by the issuance of this green bond will be allocated to investment and construction costs for a wind power generation business. By issuing green bonds, we will diversify the means of financing, and will also contribute to the realization of a recycling society by introducing more environmentally friendly facilities.
Outline of green bonds
|
Issuer |
Hitachi Zosen Corporation |
|
Redemption period |
5 years |
|
Amount of issuance |
10 billion yen |
|
Issue date |
October 2021（scheduled） |
|
Use of proceeds |
The net proceeds of the bond will be allocated to finance repayment of funds for borrowings to invest in the special purpose company of Mutsu Ogawara Onshore Wind Farm Project and to working capital as expenses for purchasing materials for construction of the facility ordered from the special purpose company. |
|
Green Project |
Mutsu Ogawara Onshore Wind Farm Project |
|
Lead managers |
Nomura Securities Co., Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
|
Green bond structuring agent |
Nomura Securities Co., Ltd. |
- Project name：Mutsu Ogawara Onshore Wind Farm Project
- Power plant: Mutsu Ogawara Wind Power Plant (tentative)
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Project company: Mutsu Ogawara Wind Power LLC (Ownership: Hitachi Zosen Corporation: 40%, ITOCHU Corporation: 40%, ENEOS Corporation:20%)
- EPC contractor: Hitachi Zosen Corporation
- Operation and maintenance management company after the start of operation: Hitachi Zosen Corporation
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Outline of facility: 4.3 MW class wind power generator x 15 Maximum output 57,000 kW
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Start of construction: 2022
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Start of operation: In or after 2024
With the environmental fields of "energy" and "water" as our core business areas, our Company contributes to the realization of a recycling society through promoting renewable energy such as wind power generation, energy-from-wastes, biogas, etc.
- As a third-party evaluation, we obtained a second party opinion from DNV Business Assurance Japan K.K., a pioneering international organization on risk management to ensure the eligibility and transparency of this green bond and improve its
appeal to investors.
- The acquisition of a third-party evaluation of this green bond is eligible for the subsidy from the Ministry of the Environment's FY2021 financial support programme for green bond issuance.
Hitachi Zosen Corporation Green Bond Framework.pdf
Second Party Opinion - Green Bond Framework Pre-issuance.pdf