Nomura Leads First Green Bond Offering in Japanese Manufacturing Industry

Hitachi Zosen’s core businesses center on the environmental fields of energy and water. Through its energy-from-waste business, and the promotion of renewable energy technologies such as wind energy and biomass power generation, the company aims to contribute to a recycling-oriented society.

Hitachi Zosen is a global leader in the energy-from-waste plant business. Energy-from-waste plants allow for the hygienic treatment of waste, and the energy generated during the treatment process is used to provide electric power. The company boasts a track record of 900 plant deliveries mainly in Japan, Asia and Europe.

The proceeds from the offering will be used as operating expenses, to purchase materials for energy-from-waste plants that offer reduced carbon dioxide emissions. The offering is intended to diversify Hitachi Zosen’s funding sources and help the company implement more environmentally-friendly facilities.

To ensure the eligibility and transparency of the green bond offering, and to make the bonds more appealing to investors, Hitachi Zosen has received a second-party opinion from DNV GL Business Assurance Japan, a leading international risk management firm. Hitachi Zosen’s green bonds are eligible for subsidies under the Japanese Ministry of Environment’s “Financial Support Programme for Green Bond Issuance [2] .”

ESG investing has become widespread in recent years. As part of this, the issuance of green bonds, social bonds that target improved social outcomes and sustainability bonds used for both social and green projects, has been attracting attention globally as a measure to address environmental problems.

By underwriting these types of bonds, Nomura aims to support the further development of the ESG bond market in Japan, and serve as a bridge between investors who want to contribute to society and projects with capital needs that aim to resolve social issues such as climate change and water.