Sustainable Finance

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. We have obtained opinions on these green bonds from third-party certification bodies, and these bonds satisfy Green Bond Principles of the International Capital Market Association (ICMA).

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.

The Mitsubishi UFJ Lease & Finance Green Bond

1st Green Bond (Domestic Unsecured Straight Bond)

1. Overview
   • April 11, 2018 "Notice of Issuance of 1st Green Bond (Domestic Unsecured Straight Bond)" [PDF:337KB](Japanese)
2. External evaluation of eligibility
   • "Framework Overview and Second Party Opinion" from Sustainalytics[PDF:330KB]
3. Publicly declared investors
   • Investors who declared that they would invest in this green bond (alphabetical order)
   • Higashi-Nippon Bank Ltd.
   • Kansai University
   • NN Life Insurance Co. Ltd.
   • Saitama Medical University
   • The Juroku Bank, Ltd.
   • Tokio Marine Asset Management Co., Ltd.
4. Reporting
   • Allocation
     The proceeds from the 1st Green Bond (Domestic Unsecured Straight Bond) issued April 17, 2018 were fully allocated to the financing of eligible green projects. The eligible green projects comprised 5 solar power generation projects in Japan that meet all the eligibility criteria (as of March 31, 2022).
   • Environmental impact
     The carbon dioxide emission reduction realized by the 5 eligible green projects amounts to approximately 12,000 tons per year, and the projects generate approximately 24,000,000 kWh annually (as of March 31, 2022; theoretical values based on output standards).
   • Annual review (March 2019)
     A third-party certification body evaluated compliance with the bond framework, finding that the allocation of the bond proceeds and reporting met the required standards.
     
     • Annual review by Sustainalytics[PDF:281KB]

Hitachi Capital Green Bond

77th Unsecured Straight Bond (Green Bond)

1. Overview
   • February 22, 2019 "Re: Issue of Hitachi Capital Corporation's 77th Unsecured Straight Bond (with Limited Interbond Pari Passu Clause) (Green Bond)"[PDF:139KB]
2. External evaluation of eligibility
   • "Framework Overview and Second-Party Opinion" from Sustainalytics[PDF:364KB]
   • "R&I Green Bond Assessment" from Rating and Investment Information, Inc. (R&I)[PDF:642KB]
3. Publicly declared investors
   • Investors who declared that they would invest in this green bond (alphabetical order) (as of February 22, 2019)
   • Amagasaki Shinkin Bank
   • Daiwa SB Investments Ltd.
   • Shijonawate Gakuen
   • Japan Post Insurance Co., Ltd.
   • Jodo Shu
   • Juroku Bank, Ltd.
   • Saitama Medical University
   • Seikei Gakuen
   • Shigaken Shinyoukumiai
   • SUMITOMO LIFE INSURANCE COMPANY
   • The Sugamo Shinkin Bank
   • Western Asset Management Company Ltd.
4. Reporting
   • Allocation
     The proceeds from the Green Bond issued February 28, 2019 were fully allocated to partially funding capital investment in a solar power generation project in Niimi City, Okayama, which the Group operates as the power producer.
   • Environmental impact
     The carbon dioxide emission reduction realized by the solar power generation green project in Niimi City, Okayama, amounts to approximately 17,000 tons per year, and the project generates approximately 40,000,000 kWh annually (as of February 15, 2023; theoretical values based on output standards).