ORIX Corp. issues green bonds in Japan to fund renewable energy projects
Japanese ORIX Corp. has decided to issue its first green bonds in Japan with proceeds to go towards renewable energy development investments in the country, where it also develops geothermal projects.
Japanese ORIX Corporation has announced its decision to issue its first Green Bond (unsecured straight bonds) in the domestic market.
Green bonds are bonds issued by companies to finance green projects (such as renewable energy, construction and renovation of energy?saving structures, and projects with environmental improvement effects such as the prevention and management of environmental pollution). Through the issuance of Green Bonds, all funds raised will be used for our solar power generation business. ORIX have received a second?party opinion from Sustainalytics (see link below), a global third?party ESG assessment company, for our eligibility as a green bond.
“ORIX Corporate Sustainability Policy” (see link below) identifies materiality in the Environment and Energy Business, Automotive Business, and Real Estate Business, which have a significant impact on society, and prioritizes solutions to these issues.
In the Environment and Energy Business, which is subject to this Green Bond, ORIX is actively promoting renewable energy businesses such as wind power, geothermal power and biomass power generation, including the development and operation of solar power generation business with a total capacity of approximately 1,000MW in Japan. By promoting the Renewable Energy Business, ORIX will address the global challenge of climate change and achieve long?term business growth.
Through the issuance of Green Bonds, ORIX will diversify our fund procurement and contribute to the realization of a sustainable society through our business activities.
ORIX is a substantial shareholder in Ormat Technologies with a 22% controlling stake acquired in 2017 and is actively developing geothermal power projects in Japan.
Terms and conditions (Overview)
- Name of the Bonds: The 197th Unsecured Senior Debt Securities (with inter?bond pari passu clause) (Green Bond)
- Total Amount of notes: JPY 10 billion (around USD 92 million)
- Coupon rate: Annual rate 0.190%
- Issue price: JPY 100 per JPY 100 of face value
- Maturity: Five years?January 30, 2025?
- Settlement date: January 30, 2020
- Rating: A+ (Rating and Investment Information, Inc. (R&I))
Source: Company release
Sustainalytics – ORIX Corporateion Green Bond Framework – Second-Party Opinion (pdf)