Sustainable Finance
Sustainable Finance
Sustainable Finance Framework
Mitsubishi HC Capital Inc. ("the Company") was born in April 2021 from the business integration of Mitsubishi UFJ Lease & Finance and Hitachi Capital. The Company sets "Our 10-year Vision" as "Together we innovate, challenge and explore the frontiers of the future." to realize "Our Mission", which is its long-term goal. The Company addresses social issues that can be solved only by itself through approaches such as SX (sustainability transformation) and DX (digital transformation) with its customers and partners, anticipating the changes in the society and business environment including changing global industry structures, accelerating digitalization and the increasing importance of sustainability.
To accelerate these initiatives, Mitsubishi HC Capital Group ("the Group") has developed "Sustainable Finance Framework" ("the Framework") in December 2024 and revised it in October 2025. The Framework is designed to be aligned with the following Principles and Guidelines via key pillars (i.e., When specifying the use of proceeds; Use of Proceeds / Process for Project Evaluation and Selection / Management of Proceeds / Reporting. When not specifying the use of proceeds; Selection of KPI / Calibration of SPT / Bond/Loan Characteristics / Reporting / Verification). The Group has obtained a Second-Party Opinion from DNV BUSINESS ASSURANCE JAPAN K.K., an independent external reviewer, that the Framework is aligned with the principles and guidelines described below.
- Green Bond Principles 2025 (ICMA*1)
- Social Bond Principles 2023 (ICMA)
- Sustainability Bond Guidelines 2021 (ICMA)
- Sustainability-Linked Bond Principles 2024 (ICMA)
- Green Bond and Sustainability-Linked Bond Guidelines 2024 (Ministry of the Environment of Japan)
- Green Loan and Sustainability-Linked Loan Guidelines 2024 (Ministry of the Environment of Japan)
- Social Bond Guidelines 2021 (Financial Services Agency of Japan)
- Green Loan Principles 2025 (LMA*2, APLMA*3, LSTA*4)
- Social Loan Principles 2025 (LMA, APLMA, LSTA)
- Sustainability-Linked Loan Principles 2025 (LMA, APLMA, LSTA)
- *1International Capital Market Association: ICMA
- *2Loan Market Association: LMA
- *3Asia Pacific Loan Market Association: APLMA
- *4Loan Syndications and Trading Association: LSTA
Sustainability-Linked Bond
16th Unsecured Bond (Sustainability-Linked Bond)
1. Overview
| 1. | Total Issue Amount | JPY 20 billion |
|---|---|---|
| 2. | Interest Rate | 1.141% |
| 3. | Issue Price | JPY 100 per JPY 100 bond face value |
| 4. | Redemtion Method and Maturity Date | Bullet repayment due on January 23, 2030 (5 years). |
| 5. | Issue Date | January 23, 2025 |
| 6. | Rating | AA (Japan Credit Rating Agency, Ltd.) AA (Rating and Investment Information, Inc) |
| 7. | KPI | The reduction rate of GHG emissions in Scope1 and 2 |
| 8. | SPT | (The determination date : October 31, 2029) The 45% reduction of GHG in Scope 1 and 2 by FY2028 (Base year : FY 2019) |
| 9. | Bond Characteristics | This bond specifies that, if a third-party verified report stating that the SPT has been achieved is not received by the determination date. Donations equivalent to 0.1% of the issuance amount of this bond will be made to qualified donation recipients by the redemption date. Qualified donation recipients are public interest incorporated associations, public interest foundations, general foundations, international organizations, local government-certified non-profit organizations, local governments, national and public university corporations, school corporations, research institutions, and similar organizations related to the improvement of SPT that has not been achieved. The recipients of the donations will be determined with the necessary approvals prior to the redemption date. |
2. Publicly declared investors
Investors who declared that they would invest in this sustainability bond (alphabetical order)
- Aichi Bank, Ltd.
- Kobeshi Shokuin Shinkumi Bank
- The Aichiken iryo Credit Cooperative
- Nagano Shinkin Bank
- Asset Management One Co., Ltd.
- Norinchukin Zenkyoren Asset Management Co., Ltd.
- Chiba Shinkin Bank
- Ogakiseino Shinkin Bank
- JA Echigo Chuetsu
- Saitama Medical University
- JA Kanagawaseisho
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- JA Yokohama
- TAJIMA SHINKIN BANK
- Japan Earthquake Reinsurance Co.,Ltd.
- The Tono Shinkin Bank
3. Reporting
- Please see below for detailed reporting on KPI performance and other related information.
Sustainability Bond
Sustainability bonds are types of bonds where the proceeds will be exclusively applied to projects expected to contribute to the resolution of both environmental and social issues.
8th Unsecured Bond (Sustainability Bond)
1. Overview
| 1. | Total Issue Amount | JPY 10 billion |
|---|---|---|
| 2. | Interest Rate | 0.454% |
| 3. | Issue Price | JPY 100 per JPY 100 bond face value |
| 4. | Redemtion Method and Maturity Date | Bullet repayment due on July 27, 2028 (5 years). |
| 5. | Issue Date | July 27, 2023 |
| 6. | Use of Proceeds | New loans, investments, or refinancing for the development or acquisition of properties (Green Buildings), Nursing reward and Medical fee receivable factoring, etc. |
| 7. | Rating | AA (Japan Credit Rating Agency, Ltd.) AA-(Rating and Investment Information, Inc) |
2. Publicly declared investors
Investors who declared that they would invest in this sustainability bond (alphabetical order)
- Aichibitou Japan Agricultural Cooperatives
- THE NISHIO SHINKIN BANK
- Asset Management One Co., Ltd.
- Nissay Asset Management Corporation
- Choshi Shoko Shinkumi Bank
- North Pacific Bank, LTD.
- The Higashi-Nippon Bank, Limited
- Organization for Small & Medium Enterprises and Regional Innovation, JAPAN
- JA-GREENNAGANO
- SAISON AUTOMOBILE&FIRE INSURANCE CO.,LTD.
- Japan Earthquake Reinsurance Co., Ltd.
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- KEISHICHO SHOKUIN CREDIT COOPERATIVE
- Tajima Shinkin Bank
- THE KOFU SHINKIN BANK
- TOKAI TELEVISION BROADCASTING CO., LTD.
- KOITO MANUFACTURING CO., LTD.
- The Tokyotoshokuin Credit Cooperative
- Nagano Shinkin Bank
- YAMANASHIKENMINSHINYOUKUMIAI
- The Neo First Life Insurance Company, Limited
3. Reporting
- Please see below for detailed reporting on funding allocation and environmental and social impacts of the Eligible Projects.
Green Bonds
Green bonds are straight corporate bonds issued to raise funds exclusively for projects that benefit the environment, such as renewable energy businesses. In 2018, Mitsubishi UFJ Lease & Finance became the first leasing company to issue a green bond by domestic public offering. In 2019, Hitachi Capital also issued a green bond. In July 2025, the Company issued its first green bond under "Sustainable Finance Framework", with the proceeds allocated to projects including "GX Assessment Lease".
Going forward, we will continue to implement wide-ranging activities aimed at realizing a sustainable, eco-friendly society while supporting capital investment aimed at addressing global warming and other environmental problems.
Mitsubishi HC Capital Green Bond
18th Unsecured Bond (Green Bond)
1. Overview
| 1. | Total Issue Amount | JPY 15 billion |
|---|---|---|
| 2. | Interest Rate | 1.098% |
| 3. | Issue Price | JPY 100 per JPY 100 bond face value |
| 4. | Redemtion Method and Maturity Date | Bullet repayment due on July 10, 2028 (3 years). |
| 5. | Issue Date | July 10, 2025 |
| 6. | Use of Proceeds | The proceeds are planned to be allocated to the following; - Funding for acquisition of assets that meet green standards under "GX Assessment Lease" - New loans and investments for development and acquisition of of properties (Green buildings) |
| 7. | Rating | AA (Japan Credit Rating Agency, Ltd.) AA (Rating and Investment Information, Inc) |
2. Publicly declared investors
Investors who declared that they would invest in this green bond (alphabetical order)
- AdachiSeiwa Shinkin Bank
- The Ohkawa Shinkin Bank
- Aomori Michinoku Bank, Ltd.
- THE OITA BANK, LTD.
- GIFU PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL COOPERATIVES
- THE SAGA KYOEI BANK,LTD.
- Japan Earthquake Reinsurance Co.,Ltd.
- SUMITOMO LIFE INSURANCE COMPANY
- Komatsu-shi Nogyo Kyodo Kumiai
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- Matsumoto Shinkin Bank
- TAJIMA SHINKIN BANK
- Nissay Asset Management Corporation
3. Reporting
The detailed reporting on the allocation of proceeds and environmental impacts of the eligible projects is planned to be made available within one year from the issuance.