Transition Finance
Transition Finance
Transition finance is a financing method that uses funds to finance a company's efforts to reduce greenhouse gas emissions under its long-term transition strategy to combat climate change.
Purpose of the Transition Finance
The Daigas Group released the “Daigas Group Carbon Neutral Vision” in January 2021, and is working on
initiatives toward “Realizing Carbon Neutrality by 2050.” The Group established the “Green/Transition Finance Framework”*1 (hereinafter, the “Framework”) as part of the procurement of funds necessary for the activity.
The Group obtained a “Second-Party Opinion”*2 from DNV Business Assurance Japan K.K., a third-party
reviewer, regarding the compliance with various principles, etc. pertaining to transition finance under the Framework.
Through transition finance, we will promote our efforts to realize a low-carbon, decarbonized society and diversify our financing sources.
- *1 Learn more about the details of the Daigas Group Green/Transition Finance Framework here:
- *2 Click here for details of the evaluation of the framework by DNV Business Assurance Japan K.K.
Transition Bond
Issuance of the 1st Transition Bond (the 44th Unsecured Corporate Bond)
Overview
| 44th Unsecured Corporate Bond | |
|---|---|
| Date of issuance | June 2, 2022 |
| Total amount of bonds | 10 billion yen |
| Interest rate | 0.369% per annum |
| Purpose of use of funds form the bonds |
|
| Maturity date | June 2, 2032 |
| Underwriters | Mizuho Securities Co., Ltd. (structuring agent*3), Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| Fiscal agent | Resona Bank, Limited |
The Bond has been evaluated by DNV Business Assurance Japan, Inc., a third-party evaluator, for compliance with applicable transition bond standards.
- *1 Read our press releases regarding various initiatives in the renewable energy business here:
Inami Wind Power plant (Japanese version only)
Noheji Mutsu Bay Wind Farm [189.0KB]
Yokohama Town Wind Farm [207.4KB]
Daigas Oita Mirai Solar Power Plant [95.8KB]
- *2 Read our press release regarding projects that contribute to fuel conversion at customer facilities to natural gas here (Japanese version only):
- *3 Structuring agent
An entity that provides support in the issuance of transition bonds, etc. in the form of advice on establishing a framework for transition bonds, etc. as well as advice and other support for receiving a third-party review (second-party opinion).
Issuance of the 2nd Transition Bond (the 47th Unsecured Corporate Bond)
Overview
| 47th Unsecured Corporate Bond | |
|---|---|
| Date of issuance | September 1, 2022 |
| Total amount of bonds | 27 billion yen |
| Interest rate | 0.529% per annum |
| Purpose of use of funds form the bonds |
|
| Maturity date | September 1, 2032 |
| Underwriters | Nomura Securities Co., Ltd., Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Daiwa Securities Co., Ltd., BofA Securities Japan Co., Ltd. |
| Fiscal agent | MUFG Bank, Ltd. |
The bond is in line with the Green/Transition Finance Framework, which DNV Business Assurance Japan K.K has qualified.
"ANNEX - Second Party Opinion" (additional assessment) on the use of proceeds and reporting of the bond has been obtained.
ANNEX - Second Party Opinion [0.3MB]
- *1 Click here for a press release regarding the solar power generation project:
Kuwaharajou Mega Solar (No. 4) [0.5MB]
Extra-high-voltage Power Plant in Isohara-cho, Kitaibaraki City, Ibaraki Prefecture [0.5MB]
- *2 Click here for a press release regarding the Himeji Natural Gas Power Plant
Issuance of the 3rd-5th Transition Bonds (the 50th-52nd Unsecured Corporate Bond)
Overview
| 50th Unsecured Corporate Bond | 51st Unsecured Corporate Bond | 52nd Unsecured Corporate Bond | |
|---|---|---|---|
| Date of issuance | June 2, 2023 | ||
| Total amount of bonds | 10 billion yen | 15 billion yen | 10 billion yen |
| Interest rate | 0.390％ per annum | 0.785％ per annum | 1.417％ per annum |
| Purpose of use of funds form the bonds |
|
||
| Maturity date | June 2, 2028 | June 2, 2033 | June 2, 2043 |
| Underwriters | Nomura Securities Co., Ltd., Mizuho Securities Co., Ltd., Daiwa Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., BofA Securities Japan Co., Ltd., SMBC Nikko Securities Inc. | ||
| Fiscal agent | Resona Bank, Limited | MUFG Bank, Ltd. | Resona Bank, Limited |
The bonds are in line with the Green/Transition Finance Framework, which DNV Business Assurance Japan K.K has qualified.
- ※1 Click here for a press release regarding the Himeji Natural Gas Power Plant.
Funding by Transition Loan
Overview
| Use of Proceeds | Himeji Natural Gas Power Plant*1 | ||
|---|---|---|---|
| Loan Term | 6 years | ||
| Loan Start Date | January 2023 | ||
| Contractor | MUFG Bank, Ltd. | Sumitomo Mitsui Trust Bank, Limited | The Norinchukin Bank |
| Loan Scheme | Syndicated loan | Bilateral loan | Bilateral loan |
| Loan Amount | 15 billion yen | 10 billion yen | 10 billion yen |
The loan is in line with the Green/Transition Finance Framework, which DNV Business Assurance Japan K.K has qualified.
- *1 Click here for a press release regarding the Himeji Natural Gas Power Plant.
Periodic Review
| Periodic Review |
|---|
Energy Transition 2030 Sustainability Report（9.5MB） Integrated Report（12.5MB）
- Management Plan
- Management Plan Documents Long-Term Management Vision 2030 Medium-Term Management Plan 2023
- Daigas Group's Values
- Daigas Group's Values Daigas Group Corporate Principles Daigas Group Charter of Business Conduct Daigas Group Code of Business Conduct Our Declaration Daigas Group Policies
- Sustainability Management
- Promotion System Materiality Stakeholder Engagement History of Co-creation of Value Value Creation Process
- Environment
- Environment Environmental Management Daigas Group Environmental Policy Estimation Method of Environmental Accounting Environmental Management Efficiency Environmental Impact throughout the Daigas Group Value Chain Environmental Targets Actions for Climate Change Assessment of CO₂ Emissions Reduction Effects Disclosure based on the TCFD Recommendations, Recognition of and Actions on Risks and Opportunities Contributing to the Resource-Recycling Society Data Trends Regarding Resource Recycling Information Disclosure on the Research Results of Soil and Groundwater Conservation Biodiversity Daigas Group Biodiversity Policy Development of Environmental Technology
- Social
- Social Innovation Management Human Resources Management Human Resources Development Diversity and Inclusion Daigas Group Diversity Promotion Policy Work-life Balance Occupational Health and Safety Health and Safety Action Plan Communication Between Employees and Company Human Rights Daigas Group Human Rights Policy Supply Chain Management Daigas Group Procurement Policy Social Impact of Business Activities in Our Energy Value Chain Customer Health and Safety Improvement of Customer Satisfaction Community
- Governance
- Governance Corporate Governance Message from the Outside Directors Compliance Consultations and Reports from Partner Companies Information Security Protect Personal Information
- Reporting Guidelines
- Global Reporting Initiative (GRI) Index SASB Table Reference for the Environmental Reporting Guidelines of the Ministry of the Environment TCFD Recommendations Table