• MHI’s third series of transition bonds supports energy transition initiatives.
• Updated Green/Transition Finance Framework reflects the latest principles and guidelines.
• Focus areas include renewable energy, clean energy, and decarbonization projects.

Mitsubishi Heavy Industries, Ltd. (MHI) has submitted a revised shelf registration statement for the issuance of its third series of transition bonds. This marks the third consecutive year MHI has issued these bonds, aimed at promoting its energy transition initiatives.

Framework Revisions

MHI’s Green/Transition Finance Framework has been updated to incorporate the latest principles and guidelines, including the 2024 Medium-Term Business Plan. New uses of proceeds have been added, such as investments in solar power, biogas production, and sustainable aviation fuel (SAF).

Energy Transition Leadership

MHI is recognized as a leader in decarbonization with a strong track record in advanced technologies. The company is accelerating projects that contribute to carbon neutrality in Japan and globally. “We are committed to promoting a carbon-neutral society through our energy transition initiatives,” stated an MHI spokesperson.

Issuance Details

• Bond Name: Mitsubishi Heavy Industries, Ltd. 44th Series Unsecured Bond (3rd Series Transition Bonds)
• Maturity: 5 years
• Issue Amount: JPY 10 billion
• Issue Timing: Late August 2024
• Use of Proceeds: New investments and refinancing in decarbonization, hydrogen solutions, and CO2 ecosystems.

Lead Managers:

• Nomura Securities Co., Ltd.
• Mizuho Securities Co., Ltd.
• SMBC Nikko Securities Inc.
• Daiwa Securities Co., Ltd.
• Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
• BofA Securities Japan Co., Ltd.

Eligible Projects

The updated framework includes a variety of green and transition projects:

• Renewable Energy: Wind, geothermal, and solar power plants.
• Clean Energy: Hydrogen and ammonia gas turbines, green hydrogen and ammonia production, biogas production.
• Decarbonization: LNG-fueled high-efficiency gas turbines, nuclear energy systems, hydrogen-reduced ironmaking, sustainable aviation fuel.

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MHI’s transition bonds are aligned with international standards, receiving second-party opinions from DNV Business Assurance Japan K.K. on their compatibility with the Climate Transition Finance Handbook, Green Bond Principles, and other relevant guidelines.

By issuing these bonds, MHI continues to drive its energy transition goals, aiming to decarbonize the energy supply side and promote energy efficiency and manpower savings on the demand side. This initiative underscores MHI’s commitment to a sustainable and carbon-neutral future.