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Nomura Leads First Green Bond Offering in Japanese Manufacturing Industry

17 September 2018
2 Min Read
Nomura Securities Co., Ltd., a wholly owned subsidiary of Nomura Holdings, Inc., announced that it has priced a three-year Green Bond[[Green bonds are any type of bond instrument where the proceeds will be exclusively applied to finance eligible Green Projects. Hitachi Zosen’s green bonds have received a Second-Party Opinion from DNV GL Business Assurance Japan, a leading international risk management firm, to ensure eligibility of the bonds as green bonds as stated by the International Capital Market Association.]] issue valued at 5 billion yen for Hitachi Zosen Corporation. Nomura acted as bookrunner for the offering, which was the first such offering by a Japanese manufacturer.

Hitachi Zosen’s core businesses center on the environmental fields of energy and water.
Through its energy-from-waste business, and the promotion of renewable energy
technologies such as wind energy and biomass power generation, the company aims to
contribute to a recycling-oriented society.

Hitachi Zosen is a global leader in the energy-from-waste plant business. Energy-from-waste
plants allow for the hygienic treatment of waste, and the energy generated during the
treatment process is used to provide electric power. The company boasts a track record of
900 plant deliveries mainly in Japan, Asia and Europe.

The proceeds from the offering will be used as operating expenses, to purchase materials for
energy-from-waste plants that offer reduced carbon dioxide emissions. The offering is
intended to diversify Hitachi Zosen’s funding sources and help the company implement more
environmentally-friendly facilities.

To ensure the eligibility and transparency of the green bond offering, and to make the bonds
more appealing to investors, Hitachi Zosen has received a second-party opinion from DNV
GL Business Assurance Japan, a leading international risk management firm. Hitachi
Zosen’s green bonds are eligible for subsidies under the Japanese Ministry of Environment’s
“Financial Support Programme for Green Bond Issuance[[The program grants subsidies to companies, municipalities and other organizations to help with expenses for external
reviews, and consultation for establishing a green bond framework. ]] .”

ESG investing has become widespread in recent years. As part of this, the issuance of green
bonds, social bonds that target improved social outcomes and sustainability bonds used for
both social and green projects, has been attracting attention globally as a measure to
address environmental problems.

By underwriting these types of bonds, Nomura aims to support the further development of
the ESG bond market in Japan, and serve as a bridge between investors who want to
contribute to society and projects with capital needs that aim to resolve social issues such as
climate change and water.

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