Green Bonds
In December 2021, Iwatani issued the first green bonds to fund the construction of hydrogen-refueling stations in Japan. Green bonds are corporate bonds for which the funds raised are restricted to initiatives in fields related to the environment.
Since 1941, Iwatani has made progress in promoting use of hydrogen energy as the ultimate clean energy source. We are developing a network of hydrogen-refueling stations as part of efforts to realize a hydrogen energy-based society, and as of March 2022, 53 stations had opened across Japan, as well as five in the U.S. We plan to increase these numbers to 83 stations in Japan and 23 in the U.S. by the end of FY2023.
Funds raised through the issue of green bonds are used to build hydrogen-refueling stations—part of the Company’s efforts in promoting transition to a CO2-free society by creating demand for hydrogen energy.
Outline of Green Bonds
As of Sept. 5, 2023
| Bond Name | Iwatani Corporation 1st Series Unsecured Corporate Bond (with Special Limited Inter-bond Pari Passu Clause) (Green Bond) | Iwatani Corporation 2nd Series Unsecured Corporate Bond (with Special Limited Inter-bond Pari Passu Clause) (Green Bond) |
|---|---|---|
| Redemption Period | 7 years | 10 years |
| Amount of Issuance | 5 billion yen | 5 billion yen |
| Issue Date | December 14, 2021 | December 14, 2021 |
| Maturity Date | December 14, 2028 | December 12, 2031 |
| Interest Rate | Annual 0.200％ | Annual 0.270％ |
| Use of Proceeds | Proceeds will be used for investment and refinance existing investments related to hydrogen supply facility development and construction for fueling low-carbon transport which is equipped with fuel cell, including FCV, truck, bus, forklift. | |
| Credit Rating | A＋ (Japan Credit Rating Agency, Ltd.) | |
| Framework | Iwatani Corporation Green Bond Framework | |
| Second-Party Opinion | We obtained a second-party opinion from Sustainalytics, an independent ratings agency, regarding the compliance of these green bonds with the International Capital Market Association (ICMA) Green Bond Principles 2021 and the Green Bond Guidelines 2020 of the Ministry of the Environment of Japan. Second-Party Opinion |
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| Reporting | Iwatani Corporation / 1st and 2nd Series Unsecured Corporate Bonds (Green Bond) Reporting (As of December 2022) | |
| Lead Managers | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | Nomura Securities Co., Ltd. |
| Green Bond Structuring Agent | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | Nomura Securities Co., Ltd. |