Toyobo Co., Ltd. 45th unsecured straight bonds (with limited inter-bond pari passu clause)
(Sustainability-Linked Bonds)
In May 2022, Toyobo predicted change in the future business environment and formulated the Sustainable Vision 2030, showing the ideal state of the Toyobo Group in 2030, sustainability indices and action plans, based on its corporate philosophy of “Jun-Ri-Soku-Yu” (adhering to reason leads to prosperity). Identifying a “decarbonized and circular society” as one social issue requiring a solution, Toyobo has stated that one of the main sustainability indices to be achieved by 2030 is a 46% or higher (compared with FY 3/14) reduction in the volume of Scope 1 and 2 greenhouse gas (GHG) emissions.
This time, Toyobo has renewed the Sustainability-Linked Bond Framework formulated in February 2023, and has newly announced this as the Sustainability-Linked Finance Framework. Under this framework, Toyobo has set targets for each fiscal year up until FY 3/31 for the Sustainability Performance Targets (SPTs) and has made it possible to secure a wide range of sustainable financing by supporting financing by not only bonds but loans as well. Through the issuance of Sustainability-Linked Bonds based on this framework, Toyobo, while allowing the continuation of initiatives aimed at finding solutions for a “decarbonized and circular society,” will clarify its commitment to these initiatives and promote engagement with a wide range of stakeholders.
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Name of the bonds |
Toyobo Co., Ltd. 45th unsecured straight bonds (with limited inter-bond pari passu clause) (Sustainability-Linked Bonds) |
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Issuance amount |
10.0 billion yen |
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Issuance period |
5 years |
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Interest rate |
0.804% |
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Condition determination date |
December 1, 2023 |
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Paid-in date |
December 7, 2023 |
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Maturity date |
December 7, 2028 |
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Acquired rating |
Japan Credit Rating Agency, Ltd. / A |
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KPI |
1) Ratio of reduction of Scope 1 and 2 GHG emission intensity to net sales of Toyobo Group |
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SPTs |
1) Ratio of reduction of GHG emission intensity to net sales in FY 3/28 (compared with the base fiscal year FY 3/21): 35.0% |
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Date for judging SPTs |
The final day of October 2028 |
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Characteristics of the bonds |
In the event that neither SPT 1) nor SPT 2) are achieved by the judgment date, Toyobo will purchase emission credits (credit/bond for the value of CO2 reduction) equivalent to 0.1% of the amount of issued bonds by the redemption of the bonds. In the event that Toyobo is unable to select the option of purchasing emission credits due to the occurrence of an inevitable matter, etc. (changes to provisions of the trading system, etc.), it will donate to qualified charities (public interest incorporated association, public interest incorporated foundation, international institution, local government authorized NPO, local government or equivalent organization for the purpose of environmental conservation activities). The emission credit purchase amount or donation amount will be equivalent to 0.07% of the amount of issued bonds if only SPT 1) is not achieved, and equivalent to 0.03% of the amount of issued bonds if only SPT 2) is not achieved. |
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Lead managers |
SMBC Nikko Securities Inc. Mizuho Securities Co., Ltd. |
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Structuring Agent* |
SMBC Nikko Securities Inc. |
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*Entities that provide support for the implementation of sustainable finance through advice, etc. regarding the formulation of the framework and obtaining external evaluations.
Toyobo has renewed the Sustainability-Linked Bond Framework formulated in February 2023, and has newly announced this as the Sustainability-Linked Finance Framework. Under this framework, Toyobo has set targets for each fiscal year up until FY 3/31 for the SPTs and has made it possible to secure a wide range of sustainable financing by supporting financing by not only bonds but loans as well.
Toyobo obtained a third party opinion from the independent external institution Japan Credit Rating Agency, Ltd. regarding confirmation that these bonds conform with the Sustainability-Linked Bond Principles, Sustainability-Linked Loan Principles, Sustainability-Linked Bond Guidelines, and Sustainability-Linked Loan Guidelines.
As the third party opinion from Japan Credit Rating Agency, Ltd. was announced, please refer to that for details.
Please see the following investors that have announced their investments in the Social Bonds (in the order of Japanese syllabary).
The Aichi Bank, Ltd.
Asset Management One Co., Ltd.
Ibaraki Prefectural Credit Federations of Agricultural Cooperatives
UEDA SHINKIN BANK
THE KYOTO CHUO SHINKIN BANK
Saitama Medical University
The Sawayaka Shinkin Bank
SHIGAKEN SHINYOUNOUGYOUKYOUDOUKUMIAIRENNGOUKAI
Shizuoka Prefectural Credit Federation of Agricultural Cooperatives
The Johnan Shinkin Bank
SUMITOMO LIFE INSURANCE COMPANY
Takaoka Shinkin Bank
Choshi Shoko Shinkumi Bank
The Tono Shinkin Bank
THE TOWA BANK, LTD.
Nakanogou Credit Cooperative
NAGANO SHINKIN BANK
Nakahyogo Shinkin Bank
Nagoya Broadcasting Network Co., Ltd.
Nissay Asset Management Corporation
THE FUJI SHINKIN BANK
Matsumoto Shinkin Bank
Mie Prefectural Credit Federation of Agricultural Cooperatives
Mitsui Sumitomo Insurance Company, Limited
The Yamaguchi Bank, Ltd.
Yuki Shinkin Bank