Global action is needed to achieve sustainability. The contribution that any one company can make by reducing the environmental impacts of its business activities is limited. Environmental Vision 2050 articulates actions for creating synergies with business partners based on our technologies, products, and services and for allowing us to play a part in creating a better world.
To achieve Environmental Vision 2050, we have been setting mid-term milestone targets, while steadily working to bridge the gap needed to reach them. We will use our efficient, compact and precision technologies in tandem with various initiatives to improve the environmental performance of our products and business activities and to reduce environmental impacts across the value chain. By offering products and services that enable new business processes, we aim to provide outstanding economic and environmental value to our customers.
In line with these policies, Seiko Epson issued green bonds1 through a public offering in Japan to raise funds for projects that will contribute to the solution of environmental problems. A second-party opinion was obtained from an external ESG rating company. They found that Epson's green bonds satisfy the requirements of Green Bond Principles 2018 published by the International Capital Market Association (ICMA) and Green Bond Guidelines, 2017, issued by the Ministry of the Environment.
1 Green bonds: Bonds issued to raise funds needed for projects that will contribute to the solution of environmental problems such as global warming.
1. Summary of Issue
|Instrument name||Seiko Epson Corporation unsecured straight bonds (with inter-bond pari passu clause) (Green Bonds)|
|Term to maturity||3 years||5 years||10 years|
|Total amount of issue||10 billion yen||40 billion yen||20 billion yen|
|Denomination||100 million yen|
|Issue price||100 yen per face value of 100 yen|
|Interest rate||0.020% per annum||0.230% per annum||0.450% per annum|
|Payment date (issue date)||2020/7/16|
|Use of proceeds||Seiko Epson plans to allocate the bond proceeds to cash reserves, which decreased due to payments for the green bond eligible assets listed in (1) through (3) below. Proceeds will also be allocated by the end of March 2021 to the green bond eligible projects listed below in (4) through (8).
Proceeds will be held as cash and cash equivalents until they are actually allocated.
|Bond rating||A (R&I)|
|Conformity assessment||Seiko Epson established a green bond framework that is aligned with the Green Bond Principles of the International Capital Market Association and obtained a second-party opinion from rating company Sustainalytics to verify that requirements are met. In addition, Rating and Investment Information, Inc. (R&I) gave Seiko Epson's green bonds a GA1 rating, its highest rating, in an R&I Green Bond Assessment.
The external review of these green bonds is eligible for a subsidy from the Ministry of the Environment's FY2019 Financial Support Programme for Green Bond Issuance.
2. Third-Party Conformity Assessments
3. List of Interested Investors (as of 13 July 2020)
The following is a list of investors who have declared an interest in investing in Epson's green bonds.
The IO Shinkin Bank
The Aichi Bank,Ltd.
The Ashikaga Bank, Ltd.
Asset Management One Co., Ltd.
Iizuka Shinkin Bank
Ibaraki Prefecture Credit Federation of Agricultural Cooperatives
The Oita Bank, Ltd.
Osaka Shinkin Bank
Kanagawa Prefectural Credit Federation of Agricultural Co-Operatives
Kanonji Shinkin Bank
Gifu Prefectural Credit Federation of Agricultural Cooperatives
The Gifu Sinkin Bank
The Kyoto Chuo Shinkin Bank
Kiryu Shinkin Bank
Kuwanamie Shinkin Bank
The Kobe Shinkin Bank
The Shiga Bank, Ltd.
Shikoku Labour Bank
Shinonome Shinkin Bank
Shiba Shinkin Bank
Showa Shinkin Bank
Shinkin Central Bank
Sugamo Shinkin Bank
Suwa Shinkin Bank
Saison Automobile and Fire Insurance Company, Limited
Daitokyo Shinkumi Credit Cooperative
Taiyo Life Insurance Company
Takaoka Shinkin Bank
Takanabe Shinkin Bank
Takamatsu Shinkin Bank
Date Shinkin Bank
Choshi Shoko Shinkumi Bank
Tokio Marine Asset Management Co., Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Tokyo City Shinkin Bank
Tono Shinkin Bank
The Towa Bank, Ltd.
Tokushima-Ken Shinyo Nogyo Kyodo Kumiai Rengokai
Naganoken Labour Bank
Nagano Shinkin Bank
Niigata Shinkin Bank
The Nishio Shinkin Bank
Nishi Chugoku Shinkin Bank
Nishihyogo Shinkin Bank
Nippon Life Insurance Company
Hagiyamaguchi Shinkin Bank
Hamamatsu Iwata Shinkin Bank
Banshu Shinkin Bank
The Higashi-Nippon Bank, Limited
The Hyogokenkeisatsu Credit Cooperative
Hyogo Shinkin Bank
JA Fukuoka Shinren
The Fuji Shinkin Bank
North Pacific Bank,LTD
Hokuriku Labour Bank
Hokkaido Shinkin Bank.
Matsumoto Shinkin Bank
Mie Prefecture credit federation of agricultural cooperatives
The Mishima Shinkin Bank
Sumitomo Mitsui DS Asset Management Company, Limited
Sumitomo Mitsui Trust Asset Management Co., Ltd.
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Midori Life Insurance Co.,Ltd.
Miyazaki Daiichi Shinkin Bank
The Miyazaki Taiyo Bank, Ltd.
Meiji Yasuda Asset Management Company Ltd.
Meiji Yasuda Life Insurance Company
The Yamagata Bank,Ltd
Yuki Shinkin Bank
Yokohama Agricultural Cooperative
The Rokinren Bank
Of the 70 billion yen raised by this green bond, 65.4 billion yen (93%) was used for capital investment and R&D funds and more in the above framework.
Unused 4.6 billion yen will be managed in cash and cash equivalents.