#Sustainability #Japan #Tokyo #green bond #Sekisui Chemical

Sekisui Chemical's First Green Bond Announcement

Sekisui Chemical Co., Ltd., led by President Keita Kato, has taken a significant step towards fostering a sustainable society. The company has decided the issuance conditions for its inaugural green bond to enhance its contributions through sustainability-driven products while ensuring ample communication regarding these initiatives with stakeholders. This decision is coupled with a clear vision for promoting funding from various sources.

Overview of the Green Bond

The details of this green bond, referred to as the 8th unsecured bond issuance from Sekisui Chemical, are as follows:

• - Name: Sekisui Chemical Co., Ltd. 8th Unsecured Bond (with special pari passu provisions among bonds) (Green Bond)
• - Maturity Period: 5 years
• - Issuance Amount: 20 billion yen
• - Issue Price: Each bond will be priced at 100 yen
• - Interest Rate: 1.333%
• - Condition Determination Date: September 5, 2025
• - Payment Date: September 11, 2025
• - Redemption Date: September 11, 2030
• - Rating: AA- (R&I)
• - Financial Agent: MUFG Bank, Ltd.

The proceeds from the bond are intended to finance newly qualified projects and refinance existing expenditures that align with Sekisui’s Green Finance Framework, which focuses on investment in perovskite solar cell research and development.

Support Structure and Partnerships

Sekisui Chemical has collaborated with several entities to structure and support the issuance of this green bond. The main structuring agent overseeing the issuance will be Daiwa Securities Co., Ltd. Additionally, the underwriting will be managed by several prominent securities firms, including:

• - Daiwa Securities Co., Ltd.
• - SMBC Nikko Securities Inc.
• - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
• - Nomura Securities Co., Ltd.
• - Mizuho Securities Co., Ltd.

These collaborations are essential not only for ensuring a robust issuance process but also for aligning the bond with comprehensive green financing standards.

External Evaluation

An external rating agency, R&I, has provided a second opinion regarding Sekisui’s Green Finance Framework, evaluating its conformity with recognized green bond standards. This external validation is crucial in establishing credibility and confidence among potential investors, demonstrating Sekisui's commitment to sustainability.

Commitment to a Sustainable Future

This issuance marks a pivotal moment for Sekisui Chemical as it strives to integrate sustainability into its core business strategies. By investing in sustainable projects such as perovskite solar cell technology, Sekisui not only contributes to environmental conservation but also embraces innovation and modernization in its operations.

The company views this green bond issuance not just as a fundraising mechanism, but as a strategic effort to engage with stakeholders in its journey towards a more sustainable future.

For further details regarding this initiative, please refer to the official announcement made on August 4th, 2025 here.

As Sekisui Chemical embarks on this exciting venture, the focus will remain on transparency, accountability, and tangible impacts that align with environmental, social, and governance (ESG) criteria, thus shaping a better planet for future generations.