Komatsu issued a “green bond”, an unsecured straight bond, through a public offering on the Japanese market. Green bonds are designed to raise funds for exclusive use in business which works to help solve environmental problems.
Under the three-year mid-term management plan, “DANTOTSU Value – Together, to “The Next” for sustainable growth” to be completed in the fiscal year ending March 31, 2025, Komatsu is making efforts for sustainable growth through a positive cycle of improving earnings and solving ESG issues.
With the proceeds from the green bond, Komatsu is going to further accelerate its efforts to help realize a decarbonized society by reducing our environmental impact and providing high-quality, highly efficient products, services, and solutions.
| Issuer | Komatsu Ltd. |
| Pricing date | July 10, 2020 |
| Issue date | July 16, 2020 |
| Maturity | 5 years |
| Issue amount | JPY10.0 billion |
| Interest rate | 0.130% |
| Use of proceeds | Applicable to the following projects: Project A: Responses to environmental problems resulting from the use of products Efforts designed to help reduce CO2 emissions from products in use to 50% by 2030 from 2010 (Specifically, R&D, the provision and wide use of products, services and solutions).
|
| Lead manager | Nomura Securities Co.,Ltd. |
| Green bond structuring agent* | Nomura Securities Co.,Ltd. |
| Rating | "AA-" from Rating and Investment Information, Inc. |
| [Reference]Press release | (Komatsu website released on July 10th, 2020) |
With respect to eligibility against the 2018 Green Bond Principles and the Green Bond Guidelines, 2020, Komatsu has obtained a second-party opinion from DNV GL BUSINESS ASSURANCE JAPAN K.K. (hereafter “DNV GL”), an internationally recognized third-party organization with expertise in this field.
The cost of obtaining an independent assessment related to the green bond is subsidized by Japan’s Ministry of the Environment in its 2020 assistance project to promote the issuance of green bonds.
Komatsu reports on the allocation and environmental and social impacts of the proceeds on an annual basis.
In addition, the external review is attached.