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 |
|
| 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 [55.8KB]
Yokohama Town Wind Farm [71.9KB]
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 Bonds | |
|---|---|
| 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
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
- 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