Hitachi Construction Machinery Issues Green Bond for the First Time
Accelerating environmental value creation through business activities from the aspect of financing for decarbonization and circular society.
Tokyo, February 2, 2024 – Hitachi Construction Machinery Co., Ltd. (TSE: 6305, President and Executive Officer: Masafumi Senzaki, "Hitachi Construction Machinery") has formulated Green Finance Framework (the “Framework”) to secure funding for business activities that contribute to solving environmental issues. Based on the Framework, Hitachi Construction Machinery has decided to issue its first Green Bond (the “Bond”) in March 2024.
Example projects under the Framework
The Hitachi Construction Machinery Group has set “Ensure a prosperous land and society for the future. We contribute toward realizing a safe and sustainable society” as group’s vision. By practicing four materialities, namely “Product and technology development contributing to climate change mitigation and adaptation”, “Conversion to recycling-oriented business model”, “Creating innovative solutions for challenges faced by customers supporting social infrastructure” and “Strengthening global governance”, the Hitachi Construction Machinery Group promotes sustainability and aims to contribute to sustainable development of society.
In addition, the Hitachi Construction Machinery Group experienced two significant changes in the management environment in 2022 and is being in a new starting point and a transition period which should also be called the "Second Start-up" of the company, and under the medium-term management plan "BUILDING THE FUTURE 2025" started in April 2023, we aim to be “Growing as a true solutions provider by delivering innovative solutions.” Moreover, due to the serious and urgent issue of climate change in the world, we will strengthen our efforts for the circular economy and carbon neutrality to realize a safe and sustainable society.
In order to achieve a decarbonized and circular society, Hitachi Construction Machinery has formulated the Framework and has decided to issue the Bond to promote the awareness of our initiatives of working on creating environmental value through products and solutions among stakeholders, and to accelerate our future efforts from the aspect of financing.
Example projects under the Framework
Overview of Green Bonds
| Name | Hitachi Construction Machinery Co., Ltd. 21st unsecured bonds (with an inter-bond pari passu clause) (Green bond) |
| Issue amount | JPY 10 billion (scheduled) |
| Maturity | 5 years (scheduled) |
| Timing of Issue | March 2024 (scheduled) |
| Lead Managers | Daiwa Securities Co. Ltd. (book runner) Nomura Securities Co.,Ltd. SMBC Nikko Securities Inc. |
| Structuring Agent*1 | Daiwa Securities Co. Ltd. |
*1: A party that supports financing using green bonds through formulating a green finance framework and obtaining external reviews such as second opinions.
Formulation of the Framework and Obtaining an External Review
In preparation for the issuance, Hitachi Construction Machinery formulated the Framework in accordance with the international standards such as the Green Bond Principles (2021) by the International Capital Market Association (ICMA). The Framework clarifies four core components (1. Use of proceeds, 2. Process for project evaluation and selection, 3. Management of proceeds, and 4. Reporting).
Hitachi Construction Machinery obtained the external review (second opinion) from Rating and Investment Information, Inc.(R&I) on the alignment with the international standards mentioned above.
Hitachi Construction Machinery Green Finance Framework
Second Opinion from R&ITrademark notice
ConSite is the registered trademark of Hitachi Construction Machinery Co., Ltd.
Related Information
About Hitachi Construction Machinery Co., Ltd.
Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer which globally deploys development, manufacturing, sales, and service businesses for its hydraulic excavators, wheel loaders, compaction equipment, and mining machinery, etc. In addition to its new machinery business, Hitachi Construction Machinery is expanding its "value chain businesses" of parts and services, remanufacturing (parts and machines), rentals, and used equipment as it aims to grow together with customers as a true solutions provider that offers innovative solutions to customers. With roughly 25,000 employees around the world, the consolidated sales revenue for Hitachi Construction Machinery was ¥1,279.5 billion for fiscal year 2022 (ended March 2023) with an overseas sales revenue ratio of 82%. For more details, please see the company's website.
Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
