・ MHI issued the transition bond for three 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 30, 2024 - Mitsubishi Heavy Industries, Ltd. (MHI) has successfully priced the third series transition bond as followings, which was announced in a press release on August 2.

■Transition Bond Summary

Bond name	Mitsubishi Heavy Industries, Ltd. 44th Series Secured 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 a hydrogen solutions ecosystem, build a CO2 solutions ecosystem)
Assigned 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.
Second party opinion	DNV Business Assurance Japan K.K.
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.

■Relevant SDGs

   

■Related releases

News dated August 2, 2024

• MHI Revises Green/Transition Finance Framework and Issues The Third Series of MHI Transition Bonds

News dated August 25, 2023

• MHI Priced Second Series Transition Bond
  -- Move Will Help Achieve Company's "Net Zero" by 2040, Toward Realizing a Carbon Neutral Society --

News dated July 28, 2023

• MHI to Issue The Second Series of Transition Bonds
  -- Move Will Help Achieve Company's "Net Zero" by 2040, Toward Realizing a Carbon Neutral Society --

News dated September 2, 2022

• MHI Finalizes Terms of First Transition Bond Issuance
  -- Move Will Help Achieve Company's "Net Zero" by 2040, Toward Realizing a Carbon Neutral World --

News dated August 5, 2022

• MHI to Issue its First Transition Bond
  -- Move Will Help Achieve Company's "Net Zero" by 2040,Toward Realizing a Carbon Neutral World --

News dated March 18, 2022

• Selection of Model Example for 2021 Climate Transition Finance Model Projects of Ministry of Economy, Trade and Industry
• Transition Finance｜Case Study 11: Mitsubishi Heavy Industries, Ltd.

News dated August 26, 2021

• MHI Sets Terms and Conditions of Second Series MHI Green Bond Issuance
  -- With Eye on Strengthening Businesses in Energy Transition Solutions to Realize a Carbon Neutral World by 2050 --

News dated August 2, 2021

• MHI to Issue the Second Series MHI Green Bond
  -- With Eye on Strengthening Businesses in Energy Transition Solutions to Realize a Carbon Neutral World by 2050--

News dated November 17, 2020

• MHI Sets Terms and Conditions of First Green Bond Issuance
  -- Aims to Help Solve Environmental Issues, Achieve SDGs, and Make a Decarbonized World a Reality --

News dated October 30, 2020

• MHI To Issue First Green Bond
  -- Aims to Help Solve Environmental Issues, Achieve SDGs, and Make a Decarbonized World a Reality --

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