Sustainability-Linked Bonds

Aim and Background of Issuance

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). 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 greenhouse gas (GHG) emissions.


In order to further promote this initiative, Toyobo has incorporated the targets for FY 3/27 into Sustainability Performance Targets (SPTs), and has formulated the Sustainability-Linked Bond Framework. Toyobo will earnestly work to achieve the targets stated in the Sustainable Vision 2030 through the issuance of Sustainability-Linked Bonds. 

Outline of Sustainability-Linked Bonds

Name of the bonds

Toyobo Co., Ltd. 44th unsecured straight bonds (with limited inter-bond pari passu clause)

(Sustainability-Linked Bonds) 

Issuance amount

20.0 billion yen

Issuance period

5 years

Interest rate


Condition determination date

March 3, 2023

Paid-in date

March 9, 2023

Maturity date

March 9, 2028

Acquired rating

Japan Credit Rating Agency, Ltd. / A


1) Ratio of reduction of Scope 1 and 2 GHG emission intensity to net sales of Toyobo Group
2) CDP score (climate change response)


1) Ratio of reduction of GHG emission intensity to net sales in FY 3/27 (compared with the base fiscal year FY 3/21): 28.5%
2) CDP score (climate change response) of “A-” or higher in FY 3/27

Date for judging SPTs

The final day of October 2027

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.

Lead managers

Mizuho Securities Co., Ltd.
Nomura Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
SMBC Nikko Securities Inc

Structuring Agent*

Mizuho Securities Co., Ltd.

*Entities that provide support for the implementation of sustainable finance through advice, etc. regarding the formulation of the framework and on obtaining external third-party evaluations. 

Sustainability-Linked Bond Framework

The Sustainability-Linked Bond Framework was formulated in accordance with the Sustainability-Linked Bond Principles set by the International Capital Market Association (ICMA) and the Sustainability-Linked Bond Guidelines set by the Ministry of the Environment in order to issue Sustainability-Linked Bonds. 

External Evaluation (The Third Party Opinion)

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 set by the International Capital Market Association (ICMA) and the Sustainability-Linked Bond Guidelines set by the Ministry of the Environment.

For details, please refer to Japan Credit Rating Agency, Ltd.'s website (in Japanse only).

Investors that announced their investments

Please see the following investors that have announced their investments in the Social Bonds (in the order of Japanese syllabary).

JA Aichi-Kita
Asset Management One Co., Ltd.
Iizuka Shinkin Bank
Ishikawa Credit Federations of Agricultural Cooperatives
Ichinoseki Shinkin Bank
The Ibaraki-ken Credit Cooperative
Ibaraki Prefectural Credit Federations of Agricultural Cooperatives
The Osaka Shinkin Bank
The Kyoto Chuo Shinkin Bank
Shizuoka Prefectural Credit Federation of Agricultural Cooperatives
Shibata Shinkin Bank
The Sugamo Shinkin Bank
Sekishinkin Bank
Seto Shinkin Bank
Daitokyo Shinkumi Credit Cooperative
Takanabe Shinkin Bank
The Toho Bank, Ltd
The First Bank of Toyama,Ltd.
Nakanogou Credit Cooperative 
Nagano Shinkin Bank
Nakahyogo Shinkin Bank
Nissay Asset Management Corporation
North Pacific Bank,Ltd
Mitsui Sumitomo Insurance Company, Limited
Mitsui Direct General Insurance Company, Limited
Midori Life Insurance Co., Ltd.
Meiji Yasuda Life Insurance Company
Momiji Bank,Ltd.
The Yamaguchi Bank,Ltd.
The Yamanashi Chuo Bank, Ltd.