Marubeni Corporation (hereinafter, “Marubeni”) announced that it has decided to issue US$500Million of Senior Unsecured Bonds due 2026 to raise funds for projects that help solve environmental problems (hereinafter, “the Green Bonds”). This issuance will be the first ever issuance of USD-denominated green bonds by a Japanese business company.
1. Background of the Green Bonds Issuance
For the purpose of medium- and long-term contributions to measures addressing climate change, the Marubeni Group announced its “Long-Term Vision on Climate Change” in March 2021. In that vision, Marubeni states its aim to achieve net-zero GHG (greenhouse gas) emissions from the Group by 2050 and also transform the total environmental impact of its business activities to a positive one by contributing to low-carbon and decarbonization through its business activities. The Marubeni Group classifies business opportunities in transition to low-carbon and decarbonization into three categories: “Energy Supply”, “Energy Demand”, and “Land Use”. The company promotes contribution to low-carbon and decarbonization in these areas through each of its businesses. The issuance of the Green Bonds contributes to the Marubeni Group’s business activities in accordance with this concept.
2. Use of Proceeds for the Green Bonds
The Green Bonds limit its use of proceeds to four business areas: (i) Renewable Energy (“Energy Supply”), (ii) FSC/PEFC certified afforestation (“Land Use”), (iii) Magnesium Refining (“Energy Demand”), and as a business to contribute to effective utilization of resources, (iv) Water Supply and Sewage from each category of business opportunities in order to transition to low-carbon and decarbonization within the Marubeni Group’s various businesses, thus contributing to the solution of environmental problems. The Marubeni Group’s active and diversified efforts to green projects have been recognized by the market, leading to issuance of the Green Bonds.
To issue the Green Bonds, the Marubeni Group has established the “Green Bond Framework” in alignment with the “Green Bond Principles 2021” as administered by the ICMA International Capital Market Association), and obtained a second party opinion from Sustainalytics as an external evaluation agency for green bonds.