Obayashi 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 in October 2018.
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(*1), our medium- to long-term environmental 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. Also, in Obayashi Environmental Policy, we have stated to work for realization of resilient society that integrates the elements of low-carbon, recycling-oriented and respecting the natural world.
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.
Obayashi Corporation is aiming to promote the understanding of our stakeholders toward our initiatives for the environment 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.
*1 Obayashi Green Vison 2050 has updated to Obayashi Sustainability Vision 2050, seeking for more sustainability.
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)
- oak kanda kaji-chou
- Managing Underwriters
- Nomura Securities Co., Ltd. (Book Runner) and Mitsubishi UFJ Morgan Stanley Co., Ltd.
- Green Bond Structuring Agent (*1)
- Nomura Securities Co., Ltd.
- Rating
- A+ (Rating and Investment Information, Inc.)
*1 Green Bond Structuring 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
- New Business Fields
- SEP "Hakkaku" for constructing large scale bottom mounted offshore wind power facilities construction completed (Available only in Japanese)
- Established the Green Energy Division (Available only in Japanese)
- News on changes in design and extension of delivery period of SEP for constructing large scale bottom mounted offshore wind power facilities (Available only in Japanese)
- News on building of SEP for constructing large scale bottom mounted offshore wind power facilities (Available only in Japanese)
- Obayashi-Shinseiwa Real Estate Corporation. (Available only in Japanese)
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).
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
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)
- 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.