J-POWER Green Bonds

1st J-POWER Green Bonds

Overview of Issue

Name/Number of Corporate Bonds 72th Unsecured Corporate Bond of Electric Power Development Co., Ltd.
(With inter-bond pari passu clause) (Green Bonds)
Period 10 years
Issue Amount ¥20 billion
Coupon Rate 0.350% annually
Issue Price ¥100 per ¥100 face value
Date of Issue 21 January 2021 (Thurs)
Lead Managers SMBC Nikko Securities Inc. (Administration)
Mizuho Securities Co. Ltd
Daiwa Securities Co. Ltd
Interest Payment Date 20 January and 20 July of each year
Redemption Date 20 January 2031 (Bullet maturity)
Face Amount of Bonds ¥100 million
Schedule Offering date: 15 January 2021 (Fri)
Subscription date: 15 January 2021 (Fri)
Closing date: 21 January 2021 (Thur)
Ratings A+(R&I)AA+(JCR)
Bond Trustees Mizuho Bank, Ltd

Investor Schedule

List of Investors announcing investment in these bonds

Investors announcing investment in the J-POWER Green Bonds are as follows.
(As of January 15, 2021. Listed in alphabetical order according to investor type)

  • SUMITOMO LIFE INSURANCE COMPANY
  • The Dai-ichi Life Insurance Company, Limited
  • Midori Life Insurance Co., Ltd.
  • Tokio Marine & Nichido Fire Insurance Co., Ltd.
  • Mitsubishi UFJ Trust and Banking Corporation
  • Asset Management One Co., Ltd.
  • BlackRock Japan Co., Ltd
  • Meiji Yasuda Asset Management Company Ltd.
  • Nissay Asset Management Corporation
  • Sumitomo Mitsui DS Asset Management Company, Limited
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.
  • The Rokinren Bank
  • JAPAN POST INSURANCE Co.,Ltd.
  • The Promotion and Mutual Aid Corporation for Private Schools of Japan
  • The Higo Bank, Ltd.
  • AICHICHITA AGRICULTURAL COOPERATIVE ASSOCIATION
  • Aichimikawa Japan Agricultural Co-operatives
  • AIZU SHINKIN BANK
  • AKAGI SHINYO KUMIAI
  • Akitaken Shinkumi Bank
  • Atsugishi Agricultural Cooperative
  • Danyo Shinkumi Bank
  • Fujinomiya Agricultural Cooperative
  • Fukushima Shinkin Bank
  • Hanno-Shinkin Bank
  • Ibaraki Prefectual Credit Federation of Agricultural Cooperatives
  • IO Shinkin Bank
  • JA AICHIAMA
  • JA Amahigashi
  • JA Fukuoka Shinren
  • JA Nasuno
  • JA-Fukushima Mirai
  • Kanonji Shinkin Bank
  • KIRYU SHINKIN BANK
  • Mie Prefecture credit federation of agricultural cooperatives
  • MIYAZAKI DAIICHI SHINKIN BANK
  • Niigata credit union
  • NISHICHUGOKU SHINKIN BANK
  • Obama Shinkin Bank
  • SAGA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL COOPERATIVES
  • SHIZUOKA YAIZU SHINKIN BANK
  • SUKAGAWA SHINKIN BANK
  • Suwa Shinkin Bank
  • THE FUJI SHINKIN BANK
  • The Gamagori Shinkin Bank
  • The Gifu Shinkin Bank
  • THE KAGOSHIMA SOGO SHINKIN BANK
  • The Kinokuni Shinkin Bank
  • The Nagano-ken Shinkumi Bank
  • THE NISHIO SHINKIN BANK
  • THE SEISHIN SHINKIN BANK
  • The Tsuru Credit Cooperative
  • Too Shinkin Bank
  • TOYOKAWA SHINKIN BANK
  • Yamanashi Kenmin Shinkumi Bank
  • Ehime Mutual Aid Associations For Municipal Personnel
  • Credit Guarantee Corporation of Shizuoka-ken
  • Japan Ceremonial Occasion Mutual Aid Society
  • NAGOYA GUARANTEE
  • The Doshisha
  • The Japan Foundation

J-POWER Green Bond Framework

J-POWER operates in line with the Climate Bonds Standard version 3.0 (CBS v3.0), the ICMA Green Bond Principles 2018 and the Green Bond Guidelines 2020, and the following sustainability bond framework has been drawn up.

J-POWER Green Bond Framework

External Evaluation (Second Opinion)

J-POWER has been evaluated by DNV GL Business Assurance Japan (an independent evaluation organization) and they have verified that the company is eligible under various standards relating to Green Bond issuance. Furthermore, J-POWER has obtained Climate Bonds Initiative (CBI) certification*1.

Green bond eligibility for pre-issuance DNV GL Verification Report

*1: CBI Certification (Climate Bonds Certification)
This is a certification awarded by CBI (international NGO) for corporate bonds that are verified by an independent evaluation organization to comply with the Climate Bond Standard. It should be noted that the Climate Bonds Standard is a standard that was compiled by the CBI on the certification process, pre- and post-issuance requirements and eligibility based on industry sector, for the purpose of maintaining trust and transparency in terms of the level of contribution of green bonds to the environment.

Use of Proceeds

Among the eligibility criteria set out in the J-POWER Green Bond Framework, the proceeds will be used to fund the following onshore wind power projects.

Eligibility Criteria

“Projects related to renewable energy”
Projects related to the development, construction, operation and maintenance of renewable energy projects (wind, hydro, geothermal and solar energy)

Reporting

The proceeds (net proceeds) of the 1st J-POWER Green Bonds issue (19.9 billion yen) are being allocated for projects that were verified up until March 2021 as eligible under the CBS v3.0 of the Climate Bonds Initiative (CBI), etc. As of the end of March 2021, all projects have started commercial operation, and have demonstrated environmental benefits (CO₂ reduction effects).

Eligible Projects

  • Setana Osato Windfarm (Hokkaido Prefecture)
  • Nikaho No. 2 Windfarm (Akita Prefecture)
  • Kuzumaki No. 2 Windfarm (Iwate Prefecture)

Verification Criteria

  • CBS v3.0 and the following technical criteria
    Wind Sector Eligibility Criteria of the Climate Bonds Standard (Version 1.1)
  • Ministry of the Environment Green Bond Guidelines (GBGLs)

Allocation Status of the Proceeds (as of end of March 2021)

Item Amount
Proceeds (net proceeds) ¥19.9 billion
Allocated amount*  
  Setana Osato Windfarm (Hokkaido Prefecture) ¥9.9 billion
Nikaho No. 2 Windfarm (Akita Prefecture) ¥8 billion
Kuzumaki No. 2 Windfarm (Iwate Prefecture) ¥2 billion
Unallocated amount ¥0
  • All of the proceeds have been allocated for refinancing to the construction funds to the Setana Osato Windfarm, the Nikaho No. 2 Windfarm and the Kuzumaki No. 2 Windfarm, which are onshore wind power projects.

Environmental Benefits

The environmental benefits from the issuance of these green bonds are as follows.

<Environmental benefits calculated from the period 1 April 2020 to 31 March 2021>

Type Project Capacity of facility Environmental benefits (CO2 emission reduction)
Wind power Setana Osato Windfarm 50MW 166,000t-CO2/year (FY2020 performance)
Nikaho No. 2 Windfarm 41MW
Kuzumaki No. 2 Windfarm 45MW
  • The Kuzumaki No. 2 Windfarm started commercial operation in December 2020, so the environmental impacts are estimated from 4 months' performance.
  • Calculation method of environmental impact: Sales amount of Electricity x CO2 emission factor (No. 2103002 (Japan Electric Power Exchange)

Post-issuance Verification

The 1st J-POWER Green Bonds issue has undergone a post-issuance verification by DNV Business Assurance Japan (an independent CBI certified organization) in accordance with CBS v3.0 requirements.

Green bond eligibility for pre-issuance DNV Verification Report

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