Daiwa Securities to Offer Sustainability Bonds from Water Resources Agency

Daiwa Securities Partners with Water Resources Agency for Sustainability Bonds

Daiwa Securities, led by President Akihiko Ogino, is set to offer sustainability bonds issued by the independent administrative corporation, the Water Resources Agency (WRA), chaired by Kenji Kano. Scheduled for issuance in the third quarter of fiscal 2025, these bonds will be available for purchase through Daiwa Securities' nationwide offices, targeting corporate investors.

Benefits for Investors

The bonds are aimed at corporate investors who wish to make a positive environmental impact. By purchasing these bonds, investors can publicly declare their support for the initiatives funded by these securities. The names of these investors will be published on the WRA's website, and links to the investors' own websites can also be included. This move highlights the significance of their investment in the context of environmental responsibility.

The primary mission of the Water Resources Agency is to ensure that safe and high-quality water is delivered consistently and affordably. The agency manages water resources comprehensively, from source facilities to distribution networks, thus fulfilling its public and community obligations. It coordinates with various stakeholders, including local communities, administrative bodies, and water users, to effectively manage water supplies and infrastructure in multiple river basins such as the Tone, Ara, and Yodo river systems.

Infrastructure and Environmental Initiatives

With a focus on supplying approximately 83% of the water development in seven key river systems, the WRA's infrastructure, including dams and canals, impacts about 17% of Japan's land area. This area is home to roughly 53% of the nation's total population and approximately 41% of its industrial output. Given these statistics, the sustainable management of these resources is vital for both economic stability and environmental health.

In addition to water supply management, the agency actively addresses challenges related to natural disasters and climate change. During times of anticipated severe weather, such as floods, the WRA employs a system to monitor weather forecasts and river flow to strategically manage dams and other facilities for flood control. This is essential for minimizing disaster damage.

During recent natural crises, including the 2024 Noto Peninsula earthquake, the WRA has deployed mobile purification units to provide water supply assistance and has conducted inspections and mitigation responses for water reservoirs.

Commitment to Sustainable Development Goals (SDGs)

Through initiatives aimed at ensuring stable and high-quality water supplies, drought mitigation, flood damage prevention, and implementing renewable energy measures, the Water Resources Agency contributes to achieving the United Nations Sustainable Development Goals (SDGs). The sustainability bonds blend both green and social impacts, attaining third-party certification from the R&I rating and investment information center, thus validating their commitment to ecological and social welfare.

Details of the Upcoming Bond Issue

- Bond term: 3 years
- Maximum issuance amount: 8 billion yen
- Issuance date: Third quarter of 2025
- Lead underwriters: Daiwa Securities and Mitsubishi UFJ Morgan Stanley Securities

For more information regarding the purchase or further details about the bond issue, corporate investors can reach out to their local Daiwa Securities office.

Further Resources

Investing can involve risks, including market volatility and the potential for loss due to various factors affecting bond terms and currency fluctuations. Investors are encouraged to read all documentation thoroughly before proceeding with investments. For detailed information about fees and investment risks, please consult the relevant financial documents provided by Daiwa Securities.