Overview of Green Bond
| Name | 21st unsecured bonds (with an inter-bond pari passu clause) (Green bond) |
| Issue amount | JPY 10 billion |
| Maturity | 5 years |
| Coupon | 0.667% |
| Pricing Date | March 1, 2024 |
| Settlement Date | March 7, 2024 |
| Maturity Date | March 7, 2029 |
| Credit Rating | A (Rating and Investment Information, Inc. (R&I)) |
| Fiscal Agent | MUFG Bank, Ltd. |
| Lead Managers | Daiwa Securities Co. Ltd. (book runner) Nomura Securities Co.,Ltd. SMBC Nikko Securities Inc. |
| Use of Proceeds | The proceeds will be allocated for financing (capital investments and R&D) and refinancing existing investments (repayment of borrowings) in the eligible projects listed below, in accordance with the Green Finance Framework established by Hitachi Construction Machinery: ① R&D related to development of battery-powered/wired electric construction machinery, hydrogen engine/fuel cell drive construction machinery, and associated products/services ② Installation of energy-efficient equipment and facilities that contribute to the improvement of energy efficiency ③ Capital investments related to solar power that contribute to expand renewable energy capacity ④ Construction of the “Integrated Building”of Banshu Works, which has obtained a S-rank certification in CASBEE |
Structuring Agent |
Daiwa Securities Co. Ltd. |
| External Review | In the formulation of “Hitachi Construction Machinery Green Finance Framework”, Hitachi Construction Machinery obtained the external review (second opinion) from Rating and Investment Information, Inc.(R&I) on the alignment with the international standards such as the Green Bond Principles (2021) by the International Capital Market Association (ICMA). |
Green Finance Framework
In preparation for the issuance, Hitachi Construction Machinery formulated the Framework . The Framework clarifies four core components (1. Use of proceeds, 2. Process for project evaluation and selection, 3. Management of proceeds, and 4. Reporting).
Second Opinion
The framework has obtained Second Opinion from Rating and Investment Information, Inc. (R&I) on the alignment with the Green Bond Principles 2021 established by the International Capital Market Association (ICMA), the Green Bond Guidelines (2022), and the Green Loan Guidelines (2022) established by the Ministry of the Environment and the Green Loan Principles 2023 established by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndication & Trading Association (LSTA).
List of investors announcing investment in the Bonds
As of March 1, 2024, in alphabetical order
- Aichibitou Japan Agricultural Cooperatives
- The Akita Bank,Ltd.
- Aoi Mori Shinkin Bank
- The Bank of Iwate, Ltd.
- The Chikuho Bank, Ltd.
- DaitokyoShinkumi Credit Cooperative
- Hanno Shinkin Bank
- THE HIGASHI‐NIPPON BANK,LIMITED
- Iwaki Shinkumi,Ltd.
- JA HIMAWARI
- JA NISHIMIKAWA
- The Joyo Bank,Ltd.
- THE KANAGAWA BANK, LTD.
- The Kita Osaka Shinkin Bank
- Kyoei Shinkumi Bank
- MAX CO.,LTD.
- Meiji Yasuda Life Insurance Company
- Momiji Bank,Ltd.
- The Musashino Bank,Ltd.
- NAGANO SHINKIN BANK
- Nakanogou Credit Cooperative
- Nissay Asset Management Corporation
- North Pacific Bank,Ltd.
- OSAKA Police Credit Union.
- Saitama Medical University
- Shiga Kenmin Shinkumi Bank
- Shigaken Shinyou Nogyo Kyodo Kumiai Rengokai
- The Shizuoka Bank, Ltd.
- Shizuoka Prefectural Credit Federation of Agricultural Cooperatives
- SUMITOMO LIFE INSURANCE COMPANY
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- Suwa Shinkin Bank
- Tajima Shinkin Bank
- The Toho Bank, Ltd.
- Tokio Marine Asset Management Co., Ltd.
- The Tokyotoshokuin Credit Cooperative
- TONO SHINKIN BANK
Reporting
The allocation status of eligible projects and the environmental improvement effects will be published annually.
Bonds & Ratings Information
