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 sustainable finance such as transition bonds and green bonds.
By issuing transiton bonds, MHI will promote its energy transition initiatives and contribute to realizing a Carbon Neutral society.

The Record of Transition Bonds Issuance

Bond name Mitsubishi Heavy Industries, Ltd. 44th Series Unsecured Bond (with inter-bond pari passu clause)
(The 3rd Series of Mitsubishi Heavy Industries Transition Bonds)
Maturity 5 years
Issuance amount JPY 10 billion
Interest rate 0.700%
Issue date September 5, 2024
Redemption date September 5, 2029
Use of proceeds 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)
Acquired rating AA- (Japan Credit Rating Agency, Ltd. [JCR])
Lead managers Nomura Securities Co., Ltd.
Mizuho Securities Co., Ltd.
SMBC Nikko Securities Inc.
Daiwa Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
BofA Securities Japan Co., Ltd.
Evaluation of the transition bond's suitability MHI receives second-party opinions from a second-party institution, DNV Business Assurance Japan K.K., on compatibility with the following principles, guidelines, etc.
  • The Climate Transition Finance Handbook
    (The International Capital Market Association (ICMA), 2023)
  • Basic Guidelines on Climate Transition Finance
    (Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment Japan, 2021)
  • Green Bond Principles (ICMA, 2021) (Note)
  • Green Bond and Sustainability-Linked Bond Guidelines (Ministry of the Environment Japan, 2022)
  • Green Loan Principles (LMA, APLMA, and LSTA, 2023)
  • Green Loan and Sustainability-Linked Loan Guidelines(Ministry of the Environment Japan, 2022)
    • It was confirmed that the eligibility criteria in this framework correspond/conform with the Green Enabling Project Guidance document published in June 2024.

News dated August 30, 2024

News dated August 2, 2024

Bond name Mitsubishi Heavy Industries, Ltd. 42nd Series Unsecured Bond (with inter-bond pari passu clause)
(The 2nd Series of Mitsubishi Heavy Industries Transition Bonds)
Maturity 5 years
Issuance amount JPY 10 billion
Interest rate 0.459%
Issue date August 31, 2023
Redemption date August 31, 2028
Use of proceeds 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)
Acquired rating AA- (Japan Credit Rating Agency, Ltd. [JCR])
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.
Framework
Evaluation of the transition bond's suitability MHI receives second-party opinions from a second-party institution, DNV Business Assurance Japan K.K., on compatibility with the following principles, guidelines, etc.
  • 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
  • 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)

News dated August 25, 2023

News dated July 28, 2023

Bond name Mitsubishi Heavy Industries, Ltd. 40th Series Unsecured Bond (with inter-bond pari passu clause)
(1st Mitsubishi Heavy Industries Transition Bond)
Maturity 5 years
Issuance amount JPY 10 billion
Interest rate 0.310%
Issue date September 8, 2022
Redemption date September 8, 2027
Use of proceeds New investments and refinancing of existing investments in Hydrogen gas turbine (co-firing) classified as "Decarbonize existing infrastructure" and Hydrogen production (blue or turquoise, etc.) classified as "Build a hydrogen solutions ecosystem," which are Eligible businesses and/or projects of Transition Projects.
Acquired rating AA- (Japan Credit Rating Agency, Ltd. [JCR])
Structuring agent Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Lead managers Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Mizuho Securities Co., Ltd.
Nomura Securities Co., Ltd.
Daiwa Securities Co., Ltd.
BofA Securities Japan Co., Ltd.
Goldman Sachs Japan Co., Ltd.
Framework
Evaluation of the transition bond's suitability MHI receives second-party opinions from a second-party institution, DNV Business Assurance Japan K.K., on compatibility with the following principles, guidelines, etc.
  • 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
  • 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)
Reporting

News dated September 2, 2022

News dated March 18, 2022