Green Bond

Green bonds are bonds in which the proceeds are used solely for the purpose of providing finance for environment–friendly projects (hereinafter "Green Projects") such as renewable energy and energy-saving business, etc. Mizuho Financial Group (hereinafter "MHFG") issues green bond to promote green finance.

Green Bond Framework

Mizuho's green bond is issued and managed based on its formulated green bond framework (hereinafter "Framework"), which is in line with the Green Bond Principles 2018 published by the International Capital Market Association and the Green Bond Guidelines 2020 published by the Ministry of the Environment of Japan. We have obtained an independent Second-Party Opinion with respect to this Framework.

Framework* Overview

*   Formulated in September 2020

1. Use of Proceeds

An amount equal to the net proceeds from any sale of green bonds will be used to finance* projects which will meet all of the conditions below (hereinafter "Eligible Green Projects").

* The term "finance" hereinafter shall include the meaning of "refinance".

  • A project meets one or more of the Project Categories (a) to (d) listed in the table below.
  • For any Eligible Green Project Category (a) to (c) listed in the table below, a project is categorized as Category B or Category C projects in accordance with the Equator Principles.
  • A loan for the project has been financed by Mizuho Bank (hereinafter "MHBK") within 24 months preceding the issue date of a relevant green bond, or will be newly financed on or after the issue date.
2. Project Evaluation and Selection Process For any Eligible Green Project Category (a) to (c), MHBK evaluates financial viability of projects in accordance with the internal credit evaluation process. Then, MHBK reviews and conducts the required due diligence in light of the Equator Principles, and categorizes projects as Category A, B or C based on its internal environmental and social risk assessment process.
Based on the list of projects provided by MHBK which lists projects falling under categories (a) to (c) and (d), MHFG will select Eligible Green Projects which align with the eligibility criteria mentioned in above Process 1.
3. Management of Proceeds An amount equal to the net proceeds of a specific issue of green bond will be loaned to MHBK and allocated by MHBK to the financing of Eligible Green Projects selected in the above Process 2. Pending the allocation of the net proceeds of such bond to finance Eligible Green Projects, the net proceeds will be invested in overnight or otherwise short–term financial instruments.
So long as any tranche of green bonds remains outstanding, MHFG will keep the list of all Eligible Green Project loans and monitor the allocation amounts.
4. Reporting MHFG will provide information on the allocation of the net proceeds of such bonds accompanied by an assertion of MHFG's management and a review-report from an independent third party and a report, where feasible and when available, on the environmental impact of Eligible Green Projects, to be updated at least annually, until the amount equal to the net proceeds of green bonds is fully allocated to Eligible Green Projects and as necessary thereafter in the event of new developments, as confirmed in the above Process 3. In the case of Renewable Energy projects and Green Buildings projects, MHFG intends to report tons of CO2 emission equivalent avoided for Renewable Energy projects, and the number and level of certification of green buildings for Green Buildings projects, respectively.

<Eligible Green Project Category>

(a) Renewable Energy The development, construction and operation of renewable energy facilities which generate wind, solar, solar thermal, biomass energy (restricted to sustainable feedstock and/or waste sources), geothermal energy (restricted to the projects that have direct emissions of less than 100gCO2/kWh), and small hydro facilities with generation capacity of 25 megawatts or less or run of river hydropower assets without pondage.
(b) Clean Transportation Projects to develop, operate and upgrade public transportation facilities (non–fossil fuel based), infrastructure and technologies including expansion and improvements of rail transport, non-motorized transport (such as bicycles), multi–modal transport, and manufacturing of electric vehicles.
(c) Pollution Prevention and Control The development, construction and operation of pollution prevention and control facilities, such as waste recycling and waste–to–energy power plants. The sources of energy will be household waste, commercial waste, or market waste which will not include plastics/rubber/tire–derived fuel (TDFs) to energy/fuel conversion, gas capture from operational landfills, and landfill gas capture for flaring.
(d) Green Buildings Buildings which have received or will receive during the life of the Green Bond at least one of the following nationally or internationally recognized green building certifications, namely LEED (Leadership in Energy and Environmental Design) Platinum or Gold, BREEAM (Building Research Establishment Environmental Assessment Method) Outstanding or Excellent, CASBEE (Comprehensive Assessment System for Built Environment Efficiency) S Rank or A Rank, DBJ Green Building Certification 5 Star or 4 Star, or BELS (Building–Housing Energy–efficiency Labelling System) 5 Star or 4 Star.

The following are excluded from the Eligible Green Project Category.

Fossil fuel–based assets, fossil fuel–based transportation/infrastructure and transportation with the main objective of transporting fossil fuel, defense and security, palm oil, wood pulp, nuclear power generation, coal–fired power generation as well as all mining and tobacco sectors.

Framework Overview and Second–Party Opinion by SUSTAINALYTICS (PDF/851KB)

Issue Record

Issue Date Issue Amount Term Opinion from External Evaluation Institution Allocation of Net Proceeds Environmental Impact
October 16, 2017 EUR 500 million 7 years Second–Party Opinion from Sustainalytics (PDF/679KB) Independent Assurance Report (as of 31st March 2020) (PDF/339KB) Environmental Impact (as of March 2020)
October 7, 2020 EUR 500 million 5 years Second–Party Opinion from Sustainalytics (PDF/851KB)

 

 

All information contained in this website prepared by MHFG has been prepared for informational purposes only and is not a solicitation of any offer to buy or sell any security or other financial instrument. Investing in securities involves risks, and, when you invest in securities, there is always the potential of losing all or a portion of your invested money. Prior to your making investment decisions based on the information contained in this website, please carefully consider the details of the relevant green bond, and confirm that such investment is in line with your financial situation and purposes. At the same time, please consult your expert advisors as necessary.
Securities referred to herein have not been, and will not be, registered under the Financial Instruments Exchange Act of Japan or the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in Japan or the United States, or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) absent an exemption from registration. These materials may contain forward–looking statements, and there can be no guarantee that these statements will be realized.

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