ORIX Corp. issues green bonds in Japan to fund renewable energy projects

ORIX Corp. issues green bonds in Japan to fund renewable energy projects Minami-Kayabe geothermal plant under construction, Minami-Kayabe, Hakodate City, Hokkaido, Japan (source: Orix Corp.
Alexander Richter 24 Jan 2020

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

Additional information:

Sustainalytics – ORIX Corporateion Green Bond Framework – Second-Party Opinion (pdf)

ORIX Sustainability website