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 Bonds
Issuance of the 1st Transition Bonds (the 44th Unsecured Corporate Bonds)
Overview
| 44th Unsecured Corporate Bonds | |
|---|---|
| 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 Bonds have 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 Bonds (the 47th Unsecured Corporate Bonds)
Overview
| 47th Unsecured Corporate Bonds | |
|---|---|
| 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 bonds have 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 Bonds)
Overview
| 50th Unsecured Corporate Bonds | 51st Unsecured Corporate Bonds | 52nd Unsecured Corporate Bonds | |
|---|---|---|---|
| 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.
Transition-Linked Bonds
Issuance of the Transition Link Bonds (the 53rd Unsecured Corporate Bonds)
Overview
| 53rd Unsecured Corporate Bonds | |
|---|---|
| Date of issuance | May 30, 2024 |
| Total amount of bonds | 25 billion yen |
| Interest rate | 1.251% per annum |
| KPI | CO2 emissions in the Daigas Group's supply chains in Japan (Scopes 1, 2, and 3) |
| SPT | FY2031.3: A reduction of 5 million tons (compared to FY2018.3) |
| Underwriters | Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Inc. |
| Fiscal agent | MUFG Bank, Ltd. |
The bonds are in line with the Green/Transition Finance Framework, which DNV Business Assurance Japan K.K has qualified.
Funding by Transition Loan
Overview
| Use of Proceeds | Himeji Natural Gas Power Plant*1 | ||
|---|---|---|---|
| Loan Term | 6 years | ||
| Start of the Loan period | 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.
Funding by Transition-Linked Loan
Overview
| Loan Amount | Total amount: 30 billion yen | ||
|---|---|---|---|
| Start of the Loan period | September 2024 | ||
| Contractors | Syndicated loan | MUFG Bank, Ltd. | |
| Bilateral loans | Sumitomo Mitsui Banking Corporation Sumitomo Life Insurance Company Dai-ichi Life Insurance Company, Limited Taiju Life Insurance Company Limited Daido Life Insurance Company Meiji Yasuda Life Insurance Company |
||
| KPI | CO2 emissions in the Daigas Group's supply chains in Japan (Scopes 1, 2, and 3) |
||
| SPT | FY2031.3: A reduction of 5 million tons (compared to FY2018.3) | ||
| Characteristics of the Loans | The terms and conditions for future interest rates will change depending on the status of achievement of the SPT. | ||
The loan is in line with the Green/Transition Finance Framework, which DNV Business Assurance Japan K.K has qualified.
Periodic Review
- Management Plan
- Management Plan Documents Long-Term Management Vision2030/Medium-Term Management Plan 2026
- 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 of the Daigas Group 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 Action 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
Promoting Business Transformation with DX Research and Development/Intellectual Property/New Businesses Creation Human Resources Management/Human Resources Strategy Targets Human Resources Development DE&I (Diversity, Equity, and Inclusion) Daigas Group Diversity Promotion Policy Work-Life Balance Occupational Health and Safety Communication Between Employees and Company Human Rights
Respect for Human Rights throughout the Value Chain
Human Rights Due Dilligence
Action for 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 Customer Satisfaction Community
Co-creation Activities with Local Communities
Activities by Public Interest Incorporated Foundations
- 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