News Releases 2023
Aug. 09, 2023
Notice on Issuance of Green Bond
Yokohama, Japan - JGC Holdings Corporation (hereinafter "JGC HD") announced today that it has formulated Green Bond Framework and submitted a shelf registration statement concerning the issuance of its inaugural green bond to the Director of Kanto Local Finance Bureau.
1. Background and Objectives
Toward a sustainable society, addressing climate change has become a global challenge. The JGC Group has defined our purpose as "Enhancing planetary health," and has identified "pursuing both a stable energy supply and decarbonization," "reducing environmental impact of resource consumption" and "building and maintaining vital infrastructure and services" as social issues to be addressed by 2040 in its long-term management vision, "2040 Vision," and is working to develop projects and technologies that contribute to low-carbon and decarbonization for enhancing planetary health.
In the medium-term management plan "Building a Sustainable Planetary Infrastructure 2025" (BSP2025) covering the first five years (FY2021-2025) toward the realization of the "2040 Vision," the JGC Group is launching a capital investment plan to increase production of high thermal conductive silicon nitride substrates for power semiconductors for EV vehicles in the "Expansion of manufacturing business for high-performance functional materials" strategy and a number of new projects such as hydrogen / fuel ammonia, chemical recycling and sustainable aviation fuel (SAF) in the "Establishment of future engines of growth" strategy. In order to utilize green bonds as a means of raising funds to promote these projects, JGC HD has formulated the Green Bond Framework and has decided to issue green bonds.
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2. Overview of the Green Bond
| Series Name |
JGC Holdings Corporation 8th Series Unsecured Straight Bond (with inter-bond pari passu clause) (Green Bond) |
|---|---|
| Maturity |
5 years (planned) |
| Total Amount of Issue | JPY 10 billion (planned) |
| Issuance Date | On and after September 2023 (planned) |
| Use of Proceeds |
To be used for new investments and expenditures related to the following projects which meet the green eligibility criteria set forth in Green Bond Framework. ● Investment in SAF production facilities using waste cooking oil ● Development of polymer synthesis technology by microorganisms using CO2 as direct raw material ● Capital investment in high thermal conductivity silicon nitride substrates for high-efficiency, high-power power modules for EV vehicles |
| Lead Managers | Nomura Securities Co., Ltd., SMBC Nikko Securities Inc., Daiwa Securities Co. Ltd., Mizuho Securities Co., Ltd. |
| Structuring Agent※ | Nomura Securities Co., Ltd. |
※ An organization which supports the issuance of green bonds by giving advice regarding the formulation of green bond frameworks and on obtaining second party opinions.
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3. Others
The Green Bond Framework has been developed in line with "Green Bond Principles 2021" by the International Capital Market Association (ICMA) and the "Green Bond Guidelines 2022" by Ministry of Environment Japan, and has obtained the second opinion from Rating and Investment Information, Inc. (R&I), an independent external reviewer, that the framework is aligned with the principles and guidelines.
The review process of obtaining the opinion was approved as eligible for a subsidy under the "FY2023 Financial Support Programme for Green Bond Issuance, etc. (Subsidy Project)" by Ministry of Environment Japan.
For more information on the framework and the second opinion, please refer to the following links.