News Releases 2019Meiden Announces a plan to issue Green Bonds with CBI Certification as Japan’s First Private Enterprise!

Meidensha Green Bonds

Meidensha Corporation (Meiden) is planning to issue Green Bonds through a public offering in the Japanese domestic bond market to procure funds to strengthen mass-production capacities for electric vehicles motors and inverters.


Green Bonds are bonds wherein the proceeds are invested exclusively in projects that offer environmental benefits (Green Projects). In June 2018, Meiden declared that it would reduce greenhouse gas emissions from business activities by 30 percent (compared to fiscal 2017) by fiscal 2030 as “The First MEIDEN Environment Vision.” Since then, it has spearheaded efforts to reduce the burdens imposed on the environment. Also, Meiden regards its contribution toward realizing Sustainable Development Goals, which have been adopted by all United Nations member states, as one of its important management challenges. To this end, it is promoting eco-friendly projects by providing products and services, such as motors and inverters for electric vehicles.

With the issuance of Green Bonds, Meiden intends to expand the range of fund procurement resources, while trying to ensure that a wide range of stakeholders deepen their understanding about Meiden’s active approach to protect the environment.
Meiden is aiming to promote the understanding of our stakeholders toward the Meiden group’s proactive initiatives on the environment by issuing this green bonds. Together with that, we are hoping to further contribute to the realization of a sustainable recycling-oriented economy and society.
 
< External Reviews for Meidensha Green Bonds>
For the issuance, Meiden established a Green Bond framework based on Green Bond Principles 2018*1 and Green Bond Guidelines, 2017*2 published by Ministry of Environment of Japan (MOEJ). Furthermore, it has satisfied the eligibility criteria in the Climate Bonds Standard Version 2.1*3 provided by the Climate Bonds Initiative (CBI).

Japan Credit Rating Agency, Ltd. (JCR) has preliminarily assigned “Green 1”the highest rating for overall “JCR Green Bond Preliminary Evaluation”, to Meidensha Green Bonds. The bonds are considered to meet the standards for the items required by the Green Bond Principles 2018 and the Green Bond Guidelines, 2017 of MOEJ.

DNV GL Business Assurance Japan K.K. (DNV GL), one of the world's leading organization to evaluate and accredit the ESG performance, has verified that Meidensha Green Bonds cleared the requirements in the Climate Bonds Standard Version 2.1 as well as related technological standards.

Furthermore, Meiden has received certification from Climate Bonds Initiative (CBI), an international nongovernmental organization dedicated to promoting large-scale investments to realize a low-carbon society that sets stringent standards for the issuance of such bonds. Meiden is the first Japanese private enterprise to receive the CBI certification.

Additionally, JCR and DNV GL has received the notification of Green Finance Organization JAPAN’s decision to grant as subsidy as part of the Financial Support Programme for Green Bond Issuance of MOEJ’s FY 2018*4.

                                                  

Please refer to the following links for details of the second opinion: 
JCR Green Bond Evaluation
DNV GL Pre-issuance Verification Report



Outlines of Green Bonds

 Registered amount of issuance

 7 billion yen

 Maturity

 Undetermined

 Use of proceeds

 Proceeds from the bonds will be used to pay for Mass-production
 facilities for electric vehicle parts (Please refer to the outlines listed
 below)

 Lead managing underwriter

 Undetermined

 Guidelines in which Meidensha
 Green Bonds qualification was
 confirmed

 Climate Bonds Standard Version 2.1
 Low Carbon Land Transport and the Climate Bonds Standard Version 1.0
 (CBI)
 Green Bond Principles 2018 (ICMA)
 Green Bond Guidelines (2017, MOEJ)


Outlines of Meidensha Green Bonds Projects (Plan) ; improvements to be made to mass-production facilities for electric vehicle parts

Total amount of capital investment: About 7 billion yen

 Nagoya Works: Renovation of existing buildings and introduction of new facilities

 Location

 496 Ittangosewari, Nishibiwajimacho, Kiyosu City, Aichi Prefecture

 Parts to be produced

 Inverter-Integrated Motor Units for EVs

 Start of operations

 Scheduled for November 2019

 Total floor space

 4,620㎡

 Production capacity

 Maximum annual production of 170,000 units


 Kofu Meidensha Electric Mfg. Co., Ltd.: Construction of new building and introduction of new facilities

 Location

 825 Nakadate, Chuo City, Yamanashi Prefecture

 Parts to be produced

 Motors for EVs

 Start of operations

 Scheduled for November 2019

 Total floor space

 2,660㎡

 Production capacity

 Maximum annual production of 170,000 units


 Numazu Works: Expansion of facilities

 Location

 515 Kaminakamizo, Higashimakado, Numazu City, Shizuoka Prefecture

 Parts to be produced

 Inverters for EVs

 Start of operations

 Scheduled for April 2019

 Total floor space

 240㎡

 Production capacity

 Maximum annual production of 120,000 units

 

*1The guideline regarding green bond Issuance is written by Green Bond Principles Executive Committee which is facilitated by ICMA (International Capital Market Association).

*2 MOEJ (Ministry of the Environment of Japan) has established “the Green Bond Guidelines, 2017” in March 2017 with the purpose of spurring issuances of Green Bonds and investments in them in Japan. The Guidelines, with due consideration to the consistency with the GBP, which is widely accepted in the Green Bond markets in the world, provide issuers, investors and other market participants with illustrative examples of specific approaches and interpretations tailored to the characteristics of the Japan's bond market which will aid these market participants to make decisions on working-level matters related to Green Bonds.
MOEJ's website: Green Bond Guidelines, 2017
http://www.env.go.jp/en/policy/economy/gb/guidelines.html

*3 Climate Bonds Standards (CBS) is a standard developed by Climate Bonds Initiative (CBI), the UK’s international nongovernmental organization, which includes certification process, pre issuance and post-issuance requirements and sectoral eligibility and guidance. And is aimed with the objective of “Ensuring credibility and transparency of Green Bond’s contribution to the environment. CBS imposes a sectoral standard, and it is necessary to meet the applicable sectoral standard in judging the eligibility of projects and assets covered by the green bond.

*4 A program where subsidies will be provided for the expenses that are required by those who support companies, municipalities and other bodies who seek to issue Green Bonds, in the form of granting external reviews, consultation on establishing a Green Bond framework, etc.
(1) A Green Project that meets one of the following criteria:
1. Contributes mainly to domestic decarbonization (renewable energy, energy efficiency, etc.)
–Projects for which equal to or more than half of the procured amount, or equal to or more than half of the number of projects is domestic decarbonization-related project.
2. Has high decarbonization and effects on vitalization of local economy
–Decarbonization effects Those whose subsidy amount per ton of domestic CO2 reduction is less than the specified amount.
–Effects on vitalization of local economy Projects that are expected to contribute to effects on vitalization of local economy as part of the ordinance and plan, etc. decided by the municipality, projects for which investment by municipalities can be anticipated, etc.
(2) Compliance with the Green Bond Guidelines to be confirmed by an external review organization before issuance.
(3) It cannot be "Green wash" bonds.

MOEJ's website: Green Bond Issuance Promotion Platform
http://greenbondplatform.env.go.jp/en/

This press release is provided for the sole purpose of publicly announcing the Company’s issuance of the Bonds, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside of Japan.


Press contacts:

Public Relations Division
e-mail: kouhou@mb.meidensha.co.jp