Overview of Fourth Series of Seibu Holdings Inc. Unsecured Straight Bonds (Green Bonds)
In December 2019, Seibu Holdings became the first company in the land transport industry to issue a wholesale Green Bonds.
A Green Bond is a bond issued by companies and local public entities, etc. to procure the funding required for green projects, such as environmental improvement projects , renewable energy projects, the construction or refurbishment of energy-efficient buildings, prevention and management of environmental pollution, and so on.
By issuing Green Bonds, in addition to further diversifying our funding methods, we will contribute to the building of a sustainable society by providing green transportation methods and encouraging the spread of renewable energy.
|Name of bonds||Fourth Series of Seibu Holdings Inc. Unsecured Straight Bonds
(With Inter-Bond Pari Passu Clause) (Green Bonds)
|Issue date||December 12, 2019|
|Date of determination of issuance terms||December 5, 2019|
|Issued term||10 years|
|Total amount of issuance||10 Billion Yen|
|Use of funds||Repayment of the costs for introducing the new energy-saving train cars and the building for the solar power station|
|Press release||A land transport industry first!
The Seibu Group to issue Green Bonds (wholesale bonds)＞
|Bond rating||A- (Japan Credit Rating Agency, Ltd.)
A- (Rating and Investment Information, Inc.)
Third-Party Evaluation of Green Bond Eligibility
In order to issue the Green Bonds, the Group established a Green Bond framework in accordance with the Green Bond Principals (2018) and the Green Bond Guidelines (2017). In addition, the Group acquired a third-party evaluation from the Japan Credit Rating Agency, Ltd. (JCR) of Green 1, the highest score in the JCR Green Bond Rating system awarded for green bond eligibility.
In its evaluation of the Green Bonds, JCR also commented favorably on the contribution by the bond to achieving SDGs.
List of investors that have announced their investments in the Green Bonds
These are the investors who have announced that they will invest in the fourth series of unsecured straight bonds (Green Bonds).
(As of December 6, 2019, alphabetical order)
Daitokyo Shinkumi Credit Cooperative
The Fukushima Shinkin Bank.
The Gamagori Shinkin Bank
Hamamatsu Iwata Shinkin Bank
The Hanno Shinkin Bank
Hiratsuka SHINKIN BANK.
The Ichii Shinkin Bank
KANAGAWA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL CO-OPERATIVES
Kiryu Shinkin Bank
Miyazaki Miyakonojo Shinkin Bank
NISHI-CHUGOKU SHINKIN BANK.
The Osaka City Shinkin Bank
The Rokinren Bank
The Seto Shinkin Bank
Sumitomo Mitsui DS Asset Management Company, Limited
SUWA SHINKIN BANK
THE TOYOTA SHINKIN BANK
① Allocation Reporting
The entire value of the funds＊ sourced on December 12, 2019 has been allocated to refinancing existing capital investments (related to the introduction of new energy-saving train cars, and a solar power station), including that for the fiscal year in which the issue was made.
＊Funds in hand after issuing expenses have been deducted from the issue value of the bonds
|Target for fund allocation||Value of fund allocation|
|New energy-saving train car||Part of the cost of the new “Laview“ limited express train (seven units)||2.5 Billion Yen|
|Part of the cost of the new “40000-Series“ commuter train (four units)||4.6 Billion Yen|
|Subtotal||7.1 Billion Yen|
|Construction of a solar power station||Part of the cost of the Seibu Takeyama Solar Power Station||2.8 Billion Yen|
|Total||9.9 Billion Yen|
② Environmental improvement effects (impact report)
The environmental improvement effects generated by projects eligible for funding allocation from these Green Bonds are as follows.
※Theoretical values as of December 5, 2019
|Eligible projects||Reductions in CO2 emissions per km of transportation
|New energy-saving train car||New “40000-Series“ commuter train (per unit)||5,221|
|New “Laview“ limited express train (per unit)||5,318|
|Eligible projects||Annual power generated
(20-year average, MWh)
|** Reductions in CO2 emissions
|Solar power station||Seibu Takeyama Solar Power Station||8,662||4,002|
**This shows the scale of the power generated.