Sekisui Chemical Plans First Green Bond Issuance in 2025
In a significant move towards enhancing its sustainability initiatives, Sekisui Chemical Co., Ltd. (President: Keita Kato) has announced plans for its first green bond issuance, scheduled for September 2025. This initiative is designed to accelerate the company's efforts in contributing to a sustainable society and will serve to reinforce its commitment to sustainability by facilitating funding for eligible projects under its established Green Finance Framework.
The upcoming bond will be labeled as the "Sekisui Chemical Co., Ltd. 8th Unsecured Bond (with limited inter-bond ranking and green bond designation)." It will be structured with a proposed issuance amount of ¥20 billion, with a maturity period of five years. The primary purpose of the funds raised through this bond will be allocated to new or refinanced existing expenditures related to eligible projects, notably investments in perovskite solar cell technology.
To support this initiative, Sekisui Chemical has engaged Daiwa Securities Co., Ltd. as the structuring agent. This partnership aims to provide advice on developing the Green Finance Framework and obtaining external evaluations, such as second opinions, to ensure the integrity and green credentials of the bond issuance. Additionally, Daiwa Securities will serve as the lead underwriting firm along with several other major securities companies, including SMBC Nikko, Mitsubishi UFJ Morgan Stanley, Nomura, and Mizuho Securities.
In preparation for the bond issuance, Sekisui Chemical is developing a comprehensive Green Finance Framework that addresses four crucial components: 1) the intended use of the raised funds, 2) the evaluation and selection process of the projects funded, 3) the management of the raised funds, and 4) reporting guidelines. Furthermore, the company has obtained a second opinion from R&I, a recognized external agency, assessing the alignment of its Green Finance Framework with international standards such as the "Green Bond Principles 2025" established by the International Capital Market Association (ICMA) and the "Green Bond Guidelines 2024" issued by the Ministry of the Environment of Japan.
Sekisui's foray into green bonds marks a pivotal step not only for the company but also for promoting sustainable financing practices within the industry. By investing in cutting-edge technologies like perovskite solar cells, Sekisui aims to be at the forefront of innovations in renewable energy, driving forward the agenda for a greener future. This initiative is also expected to resonate positively with investors who are increasingly focused on environmental, social, and governance (ESG) criteria when making investment decisions.
As stakeholders await further developments, Sekisui Chemical's commitment to sustainability highlights the growing trend of corporations taking proactive measures in environmental stewardship, thereby contributing to broader global sustainability goals. With the green bond issuance on the horizon, the road ahead looks promising for Sekisui Chemical as it strives to make impactful contributions towards a sustainable future.
Overview of the Green Bond
The upcoming bond will be labeled as the "Sekisui Chemical Co., Ltd. 8th Unsecured Bond (with limited inter-bond ranking and green bond designation)." It will be structured with a proposed issuance amount of ¥20 billion, with a maturity period of five years. The primary purpose of the funds raised through this bond will be allocated to new or refinanced existing expenditures related to eligible projects, notably investments in perovskite solar cell technology.
Strategic Partnerships
To support this initiative, Sekisui Chemical has engaged Daiwa Securities Co., Ltd. as the structuring agent. This partnership aims to provide advice on developing the Green Finance Framework and obtaining external evaluations, such as second opinions, to ensure the integrity and green credentials of the bond issuance. Additionally, Daiwa Securities will serve as the lead underwriting firm along with several other major securities companies, including SMBC Nikko, Mitsubishi UFJ Morgan Stanley, Nomura, and Mizuho Securities.
Green Finance Framework and External Evaluation
In preparation for the bond issuance, Sekisui Chemical is developing a comprehensive Green Finance Framework that addresses four crucial components: 1) the intended use of the raised funds, 2) the evaluation and selection process of the projects funded, 3) the management of the raised funds, and 4) reporting guidelines. Furthermore, the company has obtained a second opinion from R&I, a recognized external agency, assessing the alignment of its Green Finance Framework with international standards such as the "Green Bond Principles 2025" established by the International Capital Market Association (ICMA) and the "Green Bond Guidelines 2024" issued by the Ministry of the Environment of Japan.
Future Implications
Sekisui's foray into green bonds marks a pivotal step not only for the company but also for promoting sustainable financing practices within the industry. By investing in cutting-edge technologies like perovskite solar cells, Sekisui aims to be at the forefront of innovations in renewable energy, driving forward the agenda for a greener future. This initiative is also expected to resonate positively with investors who are increasingly focused on environmental, social, and governance (ESG) criteria when making investment decisions.
As stakeholders await further developments, Sekisui Chemical's commitment to sustainability highlights the growing trend of corporations taking proactive measures in environmental stewardship, thereby contributing to broader global sustainability goals. With the green bond issuance on the horizon, the road ahead looks promising for Sekisui Chemical as it strives to make impactful contributions towards a sustainable future.
Topics Business Technology）
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