Home Business NewsBusinessBusiness Growth News Hitachi Capital UK demonstrates sustainability strategy with $40m debut green bond

Hitachi Capital UK demonstrates sustainability strategy with $40m debut green bond

by LLB Finance Reporter
23rd Mar 21 10:15 am

Hitachi Capital (UK) PLC, rated A- by S&P, has today placed a 3 year $40m senior unsecured Medium Term Note with a single investor, with a coupon of 1.07%.  The note is issued as a Green Bond under Hitachi Capital UK’s EMTN programme and will be used exclusively for the financing of eligible projects under the recently published Green Financing Framework.  The notes were issued to a single investor, Dai-ichi Frontier Life Insurance Co.,Ltd.

The issuance confirms Hitachi Capital UK’s continued commitment to its sustainability strategy, with the Green Financing Framework facilitating the funding of green projects including the provision of leases for Battery Electric Vehicles, Hybrid Solar Farms and Electric Vehicle charging points.

The first Green Bond issuance by Hitachi Capital UK is aligned to its wider vision of financially supporting projects that go towards delivering a net zero carbon economy. Hitachi Capital UK’s sustainable business aspirations include converting 100% of its 62,500+ funded car and small van fleet to Battery Electric Vehicles by 2030 and the rollout of Electric Forecourts®, Hybrid Solar Farms and Electric Hubs across the UK, as part of their relationship with GRIDSERVE.

Hitachi Capital UK obtained an independent Second Party Opinion on its framework from Sustainalytics that confirmed alignment with the Green Bond Principals.  NatWest and Nomura acted as joint Green Structuring Banks for the Hitachi Capital UK Framework, with NatWest supporting on the creation of the Green Financing Framework and Nomura supporting on the obtaining of the Second Party Opinion.  NatWest acted as Dealer on the MTN issuance.

Robert Gordon, CEO of Hitachi Capital (UK) PLC, said, “Issuance of our first green bond marks another key milestone in our wider vision of financially supporting clean transportation and renewable energy projects which help accelerate electric mobility and address climate change.

“Through our Green Financing Framework, utilising our financial strength and expertise, our intention is to issue further green bonds aligned to our commitment that 20% of our assets will support sustainable business projects over the next five years.”

Masakatsu Mizukami, Executive Officer of Dai-ichi Frontier Life Insurance Co.,Ltd added, “Our company manages assets of JPY8.9 trillion sourced from insurance premiums from customers throughout Japan.

“As a responsible institutional investor, we have a strong belief that promoting responsible investment contributes towards realising a sustainable society and are actively engaged in SDGs investment. “

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