Sustainable Finance
Sustainable Bond
Sustainable Bond Framework
Mitsubishi HC Capital Inc. (the "Company") was born in April 2021 from the business integration of Mitsubishi UFJ Lease & Finance and Hitachi Capital.
We set "Our 10-year Vision" as "Together we innovate, challenge and explore the frontiers of the future," to realize Our Mission, which is our long-term goal. We address social issues that can be solved only by Mitsubishi HC Capital with our 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 our initiatives, the Company has developed "Sustainable Bond Framework" ("the Framework") for the issuance of Green/Social/Sustainability Bonds. The Framework is designed to be aligned with the following Principles and Guidelines via key pillars i.e. Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting;
- Green Bond Principles 2021 (ICMA)
- Social Bond Principles 2021 (ICMA)
- Sustainability Bond Guidelines 2021 (ICMA)
Sustainability Bond
8th Unsecured Bond (Sustainability Bond)
- 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) - Publicly declared investors
Investors who declared that they would invest in this sustainability bond (alphabetical order)- Aichibitou Japan Agricultural Cooperatives
- Asset Management One Co., Ltd.
- Choshi Shoko Shinkumi Bank
- The Higashi-Nippon Bank, Limited
- JA-GREENNAGANO
- Japan Earthquake Reinsurance Co., Ltd.
- KEISHICHO SHOKUIN CREDIT COOPERATIVE
- THE KOFU SHINKIN BANK
- KOITO MANUFACTURING CO., LTD.
- Nagano Shinkin Bank
- The Neo First Life Insurance Company, Limited
- THE NISHIO SHINKIN BANK
- Nissay Asset Management Corporation
- North Pacific Bank, LTD.
- Organization for Small & Medium Enterprises and Regional Innovation, JAPAN
- SAISON AUTOMOBILE&FIRE INSURANCE CO.,LTD.
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- Tajima Shinkin Bank
- TOKAI TELEVISION BROADCASTING CO., LTD.
- The Tokyotoshokuin Credit Cooperative
- YAMANASHIKENMINSHINYOUKUMIAI
- Reporting
- Allocation
The proceeds from the 8th Unsecured Bond (Sustainability Bond) issued July 27, 2023 were fully allocated to refinancing for the development or acquisition of properties (office buildings / warehouses) that have received green building certifications, and Nursing reward and Medical fee receivable factoring. (as of July 31, 2023).
Detailed reporting on environmental and social impacts of the Eligible Projects is planned to be made available within one year from the issuance.
- Allocation
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. 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)
- Overview
- External evaluation of eligibility
- 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.
- 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.
- Allocation
Hitachi Capital Green Bond
77th Unsecured Straight Bond (Green Bond)
- Overview
- External evaluation of eligibility
- 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.
- 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).
- Allocation