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.

Issuance of the 1st Transition Bond (the 44th Unsecured Corporate Bond)

Overview

44th Unsecured Corporate Bonds
Total amount of bonds 10 billion yen
Interest rate 0.369% per annum
Purpose of use of funds form the bonds
  • ■Renewable energy business
    Inami Wind Power plant, Noheji Mutsu Bay Wind Farm, Yokohama Town Wind Farm, and Daigas Oita Mirai Solar Power Plant (Nissan Green Energy Farm in Oita)*1
  • ■Projects that contribute to fuel conversion at customer facilities to natural gas.*2
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
  • *1 Read our press releases regarding various initiatives in the renewable energy business here:
  • *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 Bonds
Total amount of bonds 27 billion yen
Interest rate 0.529% per annum
Purpose of use of funds form the bonds
  • ■Solar power generation project*1
    Kuwaharajou Mega Solar (No. 4), the Extra-high-voltage Power Plant in Isohara-cho, Kitaibaraki City, Ibaraki Prefecture
  • ■Himeji Natural Gas Power Plant*2
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.

  • *1 Click here for a press release regarding the solar power generation project:
  • *2 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.

Sustainability of
the Daigas Group
President's Commitment Transition Finance
Values and Sustainability Promotion of the Daigas Group
Daigas Group's Values Daigas Group Charter of Business Conduct and Management Policy Daigas Group Code of Business Conduct Sustainability Promotion System and Management Stakeholder Engagement Initiatives the Daigas Group Participates In Commendation from the Outside
Sustainability Management and Value Creation Process
Value Creation Process of the Daigas Group Long-Term Management Vision 2030 Medium-Term Management Plan 2023 Daigas Group Carbon Neutral Vision
Actions on Materiality
Materiality of the Daigas Group Materiality Review Cycle Creating Value for Customers
(Charter I)
Contributing to the Sustainability of the Environment and Society
(Charter Ⅱ)
Engaging with and Contributing to Society (Charter Ⅲ) Respecting Human Rights
(Charter IV)
Complying with Laws and Regulations (Charter V) Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
Corporate Governance
Corporate Governance Risk Management Compliance Messages from Outside Directors
Value Chain and Sustainability
Consideration for the Value Chain and Stakeholders Social Impact of Business Activities in Our Energy Value Chain and Our Efforts toward Sustainability
Daigas Group's Efforts for SDGs
Special Features: Co-create Value for a Sustainable Future - Initiatives to Achieve Carbon Neutrality Back Numbers of Special Features
FY2022 Activities Report
Creating Value for Customers (Charter I)
Charter I Index Management for Creating Value for Customers Safety and Security 1:
Procurement Stage
Safety and Security 2:
Processing Stage
Safety and Security 3:
Distribution Stage
Safety and Security 4:
Consumption Stage
Incorporating Customer Opinions Proposing New Value
Contributing to the Sustainability of the Environment and Society (Charter Ⅱ)
Charter Ⅱ Index Management toward Contributing to the Sustainability of the Environment and Society Environmental Management Environmental Management: Indicators, Targets and Results Actions for Climate Change: Recognition of and Action on Risks and Opportunities Actions for Climate Change: Method to Evaluate Effects of CO2 Emissions Reduction Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities Actions for Climate Change: Working to Reduce CO2 Emissions at Customer Sites Efforts in Resource Recycling Conserving Biodiversity Developing Environmental Technologies Addressing Environmental Risk Promotion of Green Purchasing Environmental Communication
Engaging with and Contributing to Society (Charter Ⅲ)
Charter Ⅲ Index Management of Engagement with and Contribution to Society Activities for Promoting Communication with Society Corporate Volunteering Activities under the Small Light Campaign Social Contribution Activities Activities at Osaka Gas' Foundations
Respecting Human Rights (Charter IV)
Charter IV Index Status of Management regarding Respect for Human Rights Human Rights Due Diligence Action on Human Rights
Complying with Laws and Regulations (Charter V)
Charter V Index Management for Complying with Laws and Regulations Compliance Promotion Efforts Efforts for Protection of Personal Information Information Security Consultations and Reports from Partner Companies
Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
Charter VI Index Status of Management to Support Employees' Personal Growth Employment Acceptance of Diversity Balancing Work and Family Human Resource Development and Rewards Communication Between Employees and Company Improving Occupational Health and Safety
Reporting Guidance and Guidelines and ESG Data
Reporting Guidelines
ESG Data
Environmental Performance Data Social Data Governance Data
Reports
Policy on Reporting Sustainability Activities Third-Party Verification Download Sustainability Site Terminology Search by Purpose Course Taken Since the Company's Foundation Sustainability Site Map We Value Your Feedback Topics backnumber Osaka Gas in brief