Sustainability-Linked Bonds
Sustainability-Linked Bonds
The Okamura Group has identified material management issues and has promoted initiatives from the four perspectives of Responsible corporate behavior, Pursuing employee engagement, Global environmental initiatives, and Creating environments where people can thrive. As part of Global environmental initiatives, which is one of our four materiality issues, we have positioned “contributions towards the climate change problem and realizing carbon neutrality” as our key issue. We are promoting global warming countermeasures at each stage of our business activities, taking our supply chain into consideration. The Company has decided to issue sustainability-linked bonds for the purpose of ensuring that the Group’s sustainability philosophy and initiatives are widely recognized.
We also announce that the investors listed below have expressed an intention to invest in the Bonds following the finalization of the terms of issuance.
Outline of the Sustainability-Linked Bonds
The 17th Series Unsecured Bonds
| Bond name | Okamura Corporation 17th Series Unsecured Bonds (With Inter-Bond Pari Passu Clause) (Sustainability-Linked Bonds) |
|---|---|
| Tenor | 5 years |
| Issuance amount | 5.0 billion yen |
| SPT linked to issuance terms | A reduction of greenhouse gas emissions by 30% in FY2026 as compared with FY2020 |
| Bond characteristics following the determination date | If it is determined that the SPT is not met as of the determination date (October 1, 2027), an amount equivalent to 0.15% of the issuance amount of the Bonds shall be donated by the redemption date of the Bonds to public interest incorporated associations, public interest incorporated foundations, international organizations, NPO corporations authorized by local governments, local governments, and other organizations whose purpose is to conduct environmental protection activities. |
| Terms decision date | May 30, 2024 |
| Issuance date | June 5, 2024 |
| Redemption date | June 5, 2029 |
| Credit rating | A (Japan Credit Rating Agency, Ltd.) |
| External evaluation (second-party opinion) |
Third-party Opinion on Framework for Sustainability-Linked Bonds (Japan Credit Rating Agency, Ltd.) (Japanese Only) |
| Sustainability-linked bond structuring agent | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| Framework | Framework for Sustainability-Linked Bonds May 2024 (Japanese Only) |
| News release |
May 30, 2024 Notice on the Finalization of Issue Terms for Sustainability-Linked Bonds May 10, 2024 Notice Concerning the Issuance of Sustainability-Linked Bonds |
The 16th Series Unsecured Bonds
| Bond name | Okamura Corporation 16th Series Unsecured Bonds (With Inter-Bond Pari Passu Clause) (Sustainability-Linked Bonds) |
|---|---|
| Term | 5 years |
| Issuance amount | 5 billion yen |
| SPT linked to issuance terms | A reduction of greenhouse gas emissions by 25% in FY2025 as compared with FY2020 |
| Bond characteristics following the determination date | If it is determined that the SPT is not met as of the determination date (October 1, 2026), an amount equivalent to 0.15% of the issuance amount of the Bonds shall be donated by the redemption date of the Bonds to public interest incorporated associations, public interest incorporated foundations, international organizations, NPO corporations authorized by local governments, local governments, and other organizations whose purpose is to conduct environmental protection activities. |
| Terms decision date | June 9, 2022 |
| Issuance date | June 16, 2022 |
| Redemption date | June 16, 2027 |
| Credit rating | A (Japan Credit Rating Agency, Ltd.) |
| External evaluation (second-party opinion) |
Third-party Opinion on Framework for Sustainability-Linked Bonds (Japan Credit Rating Agency, Ltd.) (Japanese Only) |
| Sustainability-linked bond structuring agent | Nomura Securities Co., Ltd. |
| Framework | Framework for Sustainability-Linked Bonds May 2022 (Japanese Only) |
| News release |
June 9, 2022 Notice on the Finalization of Issue Terms for Sustainability-Linked Bonds May 11, 2022 Notice Concerning the Issuance of Sustainability-Linked Bonds |
Status of KPI
| KPI | Unit | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 |
|---|---|---|---|---|
| Greenhouse gas emissions (Scope 1 + Scope 2) |
t-CO2 | 40,402 t | 32,825 t | 30,771 t |
〇 The scope of counting comprises companies to which accounting principles for consolidated financial statements apply for the standard year (2020).
Initiatives toward achieving SPTs
The Okamura Group has been working to reduce greenhouse gas emissions through various initiatives. We will continue to make these efforts toward achieving our emission reduction targets despite the fact that our greenhouse gas emissions will likely increase temporarily due to future business expansion. The state of our endeavors will be presented in Sustainability Reports from now on.
Okamura official website: Sustainability information (Japanese Only)
