Mitsubishi Heavy to issue transition bond

Mitsubishi Heavy Industries (MHI) on August 5 submitted a revised shelf registration statement to the Kanto Local Finance Bureau in preparation for planned issuance of a transition bond in the Japanese market, it said in a statement. The issuance will be undertaken, most likely in early September, to raise funds for allocation to initiatives toward achieving carbon neutrality.

The planned issuance is based on MHI’s selection as a model example of the ‘2021 Climate Transition Finance Model Projects’ being supported by Japan’s ministry of economy, trade and industry (METI), it said.

“One of the unique features of this model example is that MHI not only plans to achieve emission reduction from the economic activities of itself but also attempts to enable the realisation of transition strategies of other parties through its products and services,” the company said.

“Through the issuance of its first transition bond, MHI looks to diversify its fund procurement methods and achieve its target of carbon neutrality by 2040,” it added.

The bond issuance amount is 10bn yen with a maturity of five years.