MHI Sets Terms and Conditions of First Green Bond Issuance

November 17, 2020

Aims to Help Solve Environmental Issues, Achieve SDGs, and Make a Decarbonized World a Reality

Issuance aimed at raising funds in Japan to support operations in renewable and clean energies
･ Move will contribute to achieving 7th SDG: “ensuring access to affordable, reliable, sustainable and modern energy for all”

Tokyo, November 17, 2020 – Mitsubishi Heavy Industries, Ltd. (MHI) has set the terms and conditions for the corporate green bond (Note1) which will be issued in the Japan market, as announced in the Company’s press release of October 30.

1. Objectives and Background

MHI will issue the green bond to finance projects involving renewable and clean energies, with two overarching objectives: to further strengthen the Company’s initiatives toward achieving a decarbonized world, and to further enhance awareness toward its initiatives in this respect among a wide spectrum of stakeholders through the dialogue with investors,

2. Outline of the Issuance

Bond name	Mitsubishi Heavy Industries, Ltd. 36th Unsecured Corporate Bond (with Inter-bond pari passu clause)(MHI Green Bond)
Maturity	5 Years
Issuance amount	JPY 25 billion
Interest rate	0.14%
Date of issue	November 24, 2020
Redemption date	November 21, 2025
Use of proceeds	New or existing businesses or projects relating to renewable energy or clean energy (wind, hydrogen and geothermal power systems)
Acquired rating	AA- (Japan Credit Rating Agency, Ltd.: JCR)
Lead manager	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.; SMBC Nikko Securities Inc.; Mizuho Securities Co., Ltd.; Nomura Securities Co., Ltd.; Daiwa Securities Co., Ltd.; BofA Securities, Inc. (Note2)
Green bond structuring agent (Note3)	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

3. Preparation of Green Bond Framework and Acquisition of Second Party Opinion

In preparation for issuance of its green bond, MHI Group has compiled the “Mitsubishi Heavy Industries, Ltd. Green Bond Framework” recording its intentions regarding the four elements stipulated in the Green Bond Guidelines of the International Capital Market Association (ICMA): 1) use of proceeds; 2) process for project evaluation and selection; 3) management of proceeds; and 4) reporting.

With respect to evaluation of the green bond’s suitability, the Company has received a second party opinion (SPO) from Sustainalytics, a third-party institution, attesting to the bond’s conformity with ICMA’s “Green Bond Principles 2018” and the “Green Bond Guidelines” (2020 edition) issued by the Japanese Ministry of the Environment.