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Notice regarding the issuance of our first sustainability-linked bond


EBARA Ltd. (hereinafter referred to as EBARA) formulated the Sustainability Link Finance Framework (hereinafter referred to as EBARA) and plans to issue the Sustainability Link Bond (hereinafter referred to as the Corporate Bond) in September. Today, we submitted to the Kanto Local Finance Bureau an amended Shelf Registration Statement for the issuance of the Bonds.
A sustainability link bond is a corporate bond that can change financially and structurally, depending on the status of achievement of goals related to future sustainability that the company has set in advance. This is the first time that we have issued the corporate bonds.

1. The purpose and background of issuing the corporate bonds


The EBARA Group is committed to working with enthusiasm and sincerity through the founding spirit of "enthusiasm and sincerity," facing work and people with enthusiasm and sincerity, further strengthening technological capabilities and reliability, and continuing to contribute to society in the fields of water, air and the environment. In 2020, we formulated E-Vision2030 as a long-term vision. This vision is designed to help us continue to grow in a business environment that is difficult to forecast, and is a vision for our company that we need to be a decade from now and that is a path toward that vision.
The corporate bonds are based on our 2050-year carbon neutral target stipulated in E-Vision2030, and we will steadily promote initiatives to achieve these targets and aim to realize a sustainable society.

2. Outline of the Bonds

Date of issueSeptember 2024 (planned)
Total amount of issueUndecided
TermUndecided
KPIGHG EMISSIONS (Scope1, 2)
SPTReduce Scope 1+2 emissions in 2030 by 55% compared to 2018.
Judgment DayEnd of December 2031
Bond characteristicsIf the SPT has not been achieved on the assessment date (including cases where achievement cannot be confirmed), we will (1) donate an amount equivalent to 0.1% of the bond issuance amount, or (2) purchase emission credits or certificates, by the time the bonds are redeemed. The specific details will be determined through necessary resolutions by the redemption date.

(1) Donation
Donations will be made to public interest incorporated associations, public interest incorporated foundations, international organizations, local government-certified NPOs, local governments, and equivalent groups and organizations involved in improving unmet SPT targets.

(2) Purchase of emission credits or certificates
Purchase emission rights (credits representing the value of CO2 reductions) or certificates (green power certificates, non-fossil certificates, I-RECs, etc.).
Structuring Agent *Mizuho Securities Co., Ltd.
Principal Securities CompanyMizuho Securities Co., Ltd., Nomura Securities Co., Ltd.
Third-party evaluation organizationRating and Investment Information, Inc.

 

3. Establishment of this framework and acquisition of external evaluation

Regarding this framework, a second opinion from the Rating and Investment Information, Inc., which is a third-party evaluation organization Certified:
・Sustainability Link Bond Principle 2024(ICMA)
・Sustainability Link Loan Principle 2023(LMA etc.)
・Green Bond and Sustainability Link Bond Guideline 2022(Ministry of the Environment)
・Green Loan and Sustainability Link Loan Guideline 2022(Ministry of the Environment)

 

The EBARA Group aims to achieve the Sustainable Development Goals (SDGs) and further enhance its corporate value by addressing key ESG issues based on its long-term vision and medium-term management plan.

※ Persons who support the issuance of SDGs through the formulation of frameworks and advice on obtaining external evaluations such as second party opinion

■ Reference
Long-term vision "E-Vision2030"

Sustainability-linked finance frameworkopens in a new tab

Filename
240823_Ebara_SLB_FW.pdf
Size
2 MB
Format
application/pdf

R&I Second Party Opinionopens in a new tab

Filename
240823_Ebara_SLBFW_SPO.pdf
Size
2 MB
Format
application/pdf