Obayashi Green Bond

Obayashi Corporation has issued a green bond.

Obayashi Corporation has issued Obayashi Green Bond (Obayashi Corporation's 23rd Series of Unsecured Bonds) through a public offering in the Japanese domestic bond market.

Green bonds are any type of bond instrument issued by companies, local governments, or other organizations where the proceeds will be exclusively applied to eligible green projects and which are aligned with the Green Bond Principles (International Capital Market Association) and/or the Green Bond Guidelines (Ministry of the Environment, Japan).

Obayashi Corporation established Obayashi Green Vision 2050, our medium- to long-term vision, in February 2011. We have since then continuously promoted action plans, including renewable energy business and environmentally responsible real estate development projects, to realize a low-carbon society.

The proceeds from the green bond shall be allocated to our solar power, terrestrial wind power and offshore wind power generation business, as well as to develop green buildings, under the Green Vision 2050 action plans.

Obayashi Corporation is aiming to promote the understanding of our stakeholders toward Obayashi Green Vision 2050 by issuing this green bond. Together with that, we are hoping to further contribute to the realization of a sustainable recycling-oriented economy and society.

Summary of Obayashi Green Bond

Bond Name
Obayashi Green Bond (Obayashi Corporation's 23rd Series of Unsecured Bonds)
Pricing Date
October 19, 2018
Issue Date
October 25, 2018
Redemption Period
5 years
Total Amount of Issue
JPY 10,000 million
Interest Rate
0.130% per annum
Green Projects
Renewable Energy:
  • Ashikita Solar Power Station, Kushirocho Toritoushigenya Solar Power Station, Hyugahichiya Solar Power Station and Mitanehamada Wind Power Station
  • Self-Elevating Platform (SEP)
Green Buildings:
  • oak kanda kaji-chou
Managing Underwriters
Nomura Securities Co., Ltd. (Book Runner) and Mitsubishi UFJ Morgan Stanley Co., Ltd.
Green Bond Structure Agent (*1)
Nomura Securities Co., Ltd.
Rating
A+ (Rating and Investment Information, Inc.)
Shelf Registration Supplementary Prospectus

*1 Green Bond Structure Agent
One who supports the issuance of green bonds by establishing the issuer's green bond framework and advising on the acquisition of second opinions from external review providers

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External Reviews for Green Bond

Rating and Investment Information, Inc. has given an R&I Green Bond Assessment of GA1, the highest possible, to Obayashi Green Bond. It has also provided a second opinion that the green bond framework for Obayashi Green Bond is aligned with the Green Bond Principles 2018 (International Capital Market Association) and/or the Green Bond Guidelines, 2017 (Ministry of the Environment, Japan).

DNV GL Business Assurance Japan K.K. has provided a second party opinion that Obayashi Green Bond is in accordance with the Green Bond Principles 2018 (International Capital Market Association) and/or the Green Bond Guidelines, 2017 (Ministry of the Environment, Japan).

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Investors in Obayashi Green Bond

The following investors have agreed to disclose their participation in Obayashi Green Bond. (As of October 25, 2018 in alphabetical order)

  • NN Life Insurance Company, Ltd.
  • The Fukui Bank, Ltd.
  • Tokyo University of Agriculture

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Obayashi Green Bond Framework

Obayashi Corporation has established Obayashi Green Bond Framework. This framework is aligned with the four core components ("Use of Proceeds," "Process for Project Evaluation and Selection," "Management of Proceeds" and "Reporting") under the Green Bond Principles 2018 (International Capital Market Association) and/or the Green Bond Guidelines, 2017 (Ministry of the Environment, Japan). Furthermore, it has satisfied the eligibility criteria in the Climate Bonds Standard V2.1 provided by the Climate Bonds Initiative (CBI).

Use of Proceeds
Renewable Energy:
  • Ashikita Solar Power Station, Kushirocho Toritoushigenya Solar Power Station, Hyugahichiya Solar Power Station and Mitanehamada Wind Power Station
  • Self-Elevating Platform (SEP)
Green Buildings:
  • oak kanda kaji-chou
Process for Project Evaluation and Selection
Obayashi Corporation selects green projects by evaluating whether renewable energy projects and green building projects, which have been promoted in line with Obayashi Green Vision 2050, are eligible as green projects for the use of proceeds of green bonds.
Management of Proceeds
The proceeds from the green bond shall be managed by the Finance Department, Headquarters.
The amount of proceeds allocated to the green projects shall be compiled quarterly and the outstanding balance of the proceeds shall be confirmed.
The outstanding balance of the proceeds shall be managed as a part of cash and cash equivalents.
Reporting
The status of the allocation of the green bond proceeds and environmental improvement effect shall be reported and reviewed by Rating and Investment Information, Inc. and DNV GL Business Assurance Japan K.K. annually until the redemption of the green bond.
The report and the result of the review conducted by Rating and Investment Information, Inc. and DNV GL Business Assurance Japan K.K. shall be disclosed in the Obayashi Corporate Report and on Obayashi Corporation's website.

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