#Japan #Osaka #NEXCO West #Daiwa Securities #Social Bonds

NEXCO West Introduces Corporate Social Bonds

NEXCO West (West Nippon Expressway Company Limited), headquartered in Osaka, Japan, has partnered with Daiwa Securities to introduce a new series of social bonds aimed at corporate clients across the nation. Investors can purchase these bonds directly through Daiwa Securities' office locations. This initiative marks a significant step in promoting investment in infrastructure that addresses social challenges while fueling economic growth in the region.

Investment Overview

The social bonds offered by NEXCO West serve an essential purpose: raising funds to support social projects that contribute to the community, particularly in the areas of transportation and safety. This bond purchase not only allows corporates to invest but also provides a platform for them to express their commitment to NEXCO's mission and principles. The names of investing corporations will later be published on NEXCO West's official website, demonstrating their role in supporting sustainable infrastructure development.

Corporate investors wishing to take part in this initiative will find that NEXCO West's bonds align with ICMA's Social Bond Principles, ensuring transparent use of the raised funds for social welfare projects. These initiatives include the construction of new highways, renovation projects, and implementing safety measures, especially considering the increasing frequency of natural disasters.

NEXCO West’s Commitment and Vision

Founded in October 2005 as part of the privatization of the Japan Highway Public Corporation, NEXCO West’s corporate mission revolves around evolving and securing safe and reliable highway infrastructure in Japan. Their guiding philosophy is clear: they aim to prioritize safety and contribute to the community's development by continuously evolving highway functionalities to meet modern needs. Their mid-term management plan, “Evolution 2025”, includes five strategic visions aimed at ensuring safety, enhancing customer experiences, and addressing challenges posed by natural disasters.

Plans for 2025 and Beyond

Looking ahead to 2025, NEXCO West plans to offer three types of social bonds with varying maturity terms of 5, 7, and 10 years. The issuance is projected to occur in May, July, August, October, and February 2026, tailored to meet capital requirements and market conditions. Initially, in May 2025, NEXCO West intends to release approximately 70 billion yen in 5-year bonds, with additional 50 billion yen for both 7-year and 10-year bonds, bringing the total forecasted issuance to around 80 billion yen.

Investments garnered through these social bonds will not only address current infrastructure needs but also tackle pressing social issues such as aging roads, emergency response enhancements to natural calamities, and safety measures like counteracting wrong-way driving incidents.

Call to Action

For detailed information regarding these bonds or to make a purchase, corporate clients are encouraged to reach out to Daiwa Securities. They provide a thorough understanding of associated fees, risks, and the unique opportunities these bonds present for socially responsible investment.

Important Reminders

When participating in the bond market, it's crucial for investors to be aware of the potential risks involved in stock transactions, including the fluctuations of price and interest rates that might lead to financial losses. Moreover, understanding the distinct fees charged for varying investment avenues is essential.

NEXCO West’s Social Bonds signify more than just an investment; they represent a commitment to fostering safer, more efficient highways and contributing to the community’s wellbeing.