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
  • ■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 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
  • ■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

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
  • Himeji Natural Gas Power Plant※1
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


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