NEXCO East Japan's Social Bond Purchase Announcement Through Daiwa Securities

NEXCO East Japan's Initiative for Sustainable Development

In a significant financial move, Daiwa Securities Co., Ltd. has announced that it will act as an underwriter for NEXCO East Japan's (NEXCO) upcoming social bonds, set to be issued in July 2025. This initiative encourages corporate investors across Japan to purchase and express their support for sustainability projects through these bonds.

What is a Social Bond?

Social bonds are debt instruments issued for the purpose of financing projects that yield positive social outcomes. For corporate stakeholders, buying these bonds presents an excellent opportunity to publicize their investment intentions, thus aligning with corporate social responsibility goals. Investors who purchase these bonds will have their names publicly displayed on NEXCO's official website and may even link back to their own company websites.

Business Overview and Mission of NEXCO

Founded on October 1, 2005, NEXCO East Japan was established following Japan's road privatization effort, overseeing the management of highways in the Kanto, Tohoku, and parts of the Chubu regions. NEXCO's corporate philosophy focuses on maximizing the benefits of highways to enhance local communities and contribute to overall economic revitalization. It pledges to deliver safe, reliable, and comfortable highway services.

NEXCO's primary activities include major highway construction and renovation projects such as the Tokyo Gaikan Expressway and the Joban Expressway four-laning initiatives, as well as upgrading existing infra-structures through renewal projects. They also implement various traffic safety and congestion mitigation programs while managing service and parking areas across their network.

Highway Junction

Image of Takaya Junction: Provided by NEXCO East Japan

Commitment to Sustainable Development Goals (SDGs)

NEXCO East Japan strongly supports the United Nations’ Sustainable Development Goals (SDGs). Their upcoming social bond issuance, which follows ICMA's Social Bond Principles and has been certified by R&I to meet second opinion standards, aims to contribute to several SDGs – including Goals 3 (Health and Well-being), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation, and Infrastructure), 11 (Sustainable Cities and Communities), and 13 (Climate Action).

Funds accrued from the social bond will be allocated towards new highway lines, smart interchanges, and renewal projects within NEXCO's operational area. An example of such investment could involve the replacement of highway deck slabs, ensuring safety through modernized infrastructure.

Future Plans and Issuance Schedule

Scheduled to be issued in July 2025, NEXCO plans to offer these social bonds in three durations: 2, 5, and 10 years. The exact amount and the timing of the issuance may experience some variability based on funding needs and market conditions. NEXCO plans to mobilize the capital from these bonds around September, November, and January after the initial issuance.

For further details regarding purchasing these bonds or for inquiries, prospective investors are encouraged to visit their nearest Daiwa Securities branch. NEXCO East Japan aims to maintain transparency and engagement through its sustainable finance initiatives and is open to dialogue for those interested in aligning with their corporate sustainability objectives.

For more information, you can also visit NEXCO's sustainability finance section.

Conclusion

This innovative approach represents NEXCO East Japan's commitment toward sustainable development while providing businesses a platform to participate actively in social responsibility efforts. By partnering with Daiwa Securities, they are making strides towards not just enhancing public infrastructure but also nurturing the communities they serve.