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MHI Revises Green/Transition Finance Framework and Issues The Third Series of MHI Transition Bonds
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・ MHI decided to issue the third series of transition bonds for 3 consecutive years to promote the company's energy transition initiatives
・ Revisions to MHI's Green/Transition Finance Framework include the application of various latest principles and guidelines, the reflection of plans such as MHI's 2024 Medium-Term Business Plan, and the addition of uses of proceeds
・ 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 2, 2024 - 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 third issuance of transition bonds.
MHI also revised its Green/Transition Finance Framework to apply various latest principles and guidelines, reflect plans such as MHI's 2024 Medium-Term Business Plan, and add uses of proceeds (solar power, biogas production, nuclear energy systems, synthetic fuel such as sustainable aviation fuel (SAF)). MHI's bonds are issued according to this framework.
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 the bonds, MHI will promote its energy transition initiatives and contribute to realizing a Carbon Neutral society.
Outline of the Issuance
| Bond name (expected) | Mitsubishi Heavy Industries, Ltd. 44th Series Unsecured Bond (with inter-bond pari passu clause) (The 3rd Series of Mitsubishi Heavy Industries Transition Bonds) |
|---|---|
| Maturity (expected) | 5 years |
| Issue amount (expected) | JPY 10 billion |
| Issue timing (expected) | Late August 2024 |
| 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 | 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. |
Outline of the Green/Transition Finance 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.
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| Use of proceeds (green projects) |
Eligible businesses and/or projects | Eligibility Criteria (bold text indicates new projects) |
| Renewable Energy |
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| Clean Energy |
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| Use of proceeds (transition projects) |
Eligible businesses and/or projects | Eligibility Criteria (bold text indicates new projects) |
| Decarbonize existing infrastructure |
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| Build a hydrogen solutions ecosystem |
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| Build a CO2 solutions ecosystem |
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Relevant SDGs
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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.