Press Information
MHI Priced Second Series Transition Bond -- Move Will Help Achieve Company's "Net Zero" by 2040, Toward Realizing a Carbon Neutral Society --
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･ MHI issued the transition bond for two consecutive years followed by issuance of first series in 2022, 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, August 25, 2023 - Mitsubishi Heavy Industries, Ltd. (MHI) has successfully priced the second series transition bond as followings, which was announced in a press release on July 28.
Transition Bond Summary
| 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 a hydrogen solutions ecosystem, build a CO2 solutions ecosystem) |
| Assigned 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. |
| 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). |
- Mitsubishi Heavy Industries, Ltd. Green/Transition Finance Framework
- Evaluation of the suitability of Mitsubishi Heavy Industries, Ltd. Green/Transition Finance Framework by DNV
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About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.