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Nomura Leads First Sustainability Bond Offering to Obtain Climate Bonds Programmatic Certification in Asia

Nomura Securities Co. Ltd., a wholly owned subsidiary of Nomura Holdings, Inc., today announced that it has priced a Sustainability Bond offering for Japan Railway Construction, Transport and Technology Agency (JRTT).

The offering consists of a 5-year, 10-year, and 30-year tranche, valued at 10 billion yen each, as well as a 15-year tranche valued at 13 billion yen. Nomura acted as joint bookrunner for the offering.

Sustainability Bonds are any type of bond instrument where the proceeds will be exclusively used to finance a combination of both green and social projects. The bond offering issued by JRTT meets several international standards1 . In addition to obtaining an independent third-party verification from DNV GL to ensure eligibility, the bond was the first in Asia to receive the Climate Bonds Programmatic Certification under the Climate Bonds Initiative (CBI).

CBI is an international NGO that promotes large-scale investment in projects necessary for a rapid transition to a low carbon society. The certification process involves the verification of a large pool of eligible assets in anticipation of a multiple sustainability bond issuance program. The proceeds from the offering will be used for projects that also help realize the United Nations Sustainable Development Goals.

The SDG bond market in Japan has grown amid a widespread focus on sustainable investing. As the market expands, one issue is maintaining quality standards that promote sound market development. In Europe, this has led to the implementation of tighter requirements for sustainable financing. By obtaining the CBI certification, the bond offering contributes to the further development of sustainable finance in Japan.

By underwriting this bond, Nomura aims to support the growth of sustainable finance 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, innovation and regional revitalization. Nomura will also work to contribute to economic and sustainable social development and promote initiatives to achieve the sustainable development goals.

Next Finance , May 2019

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