TEPCO Renewable Power, Inc. issues 1st Green Bonds (3-year bonds)
August 18, 2021
TEPCO Renewable Power, Inc.
TEPCO Renewable Power, Inc. will issue the TEPCO Group's first Green Bonds in the form of "TEPCO Renewable Power, Inc. 1st Green Bonds (3-year bonds)" as mentioned below. A total of ¥10 billion of bonds (Note2) will be issued in September 2021 and further details will be announced on the pricing date.
As an energy company, the TEPCO Group aims to fulfill society's desire to become carbon neutral and as such has set the goals of reducing CO2 emissions originating from the sale of power by 50% of FY2013 levels by the year FY2030, and reducing CO2 emissions from the supply of energy to basically zero by the year 2050. By coming together to achieve these objectives, the entire Group will contribute to making the Japanese government's "Carbon Neutral by 2050" policy a reality.
Along with strengthening the infrastructure of our domestic hydroelectric power business, which is currently our primary business, TEPCO Renewable Power, Inc. aims to develop a total of 6~7 GW of power by FY2030 through overseas hydroelectric power and overseas & domestic offshore wind farm projects, which will become our main businesses in future. In this way we aim to make renewable energies the main power sources provided by the TEPCO Group and seek to turn a net profit of around ¥100 billion by FY2030.
In order to raise the funds necessary to achieve these goals, we have decided to issue Green Bonds. The procured funds will be used to develop renewable energies (hydro/wind/solar/geothermal), newly invest in development, construction, operation, refurbishment projects, and refinance existing investment.
For the issuance of the green bond, we have established the TEPCO Renewable Power Inc. Green Bond Framework, which puts forth our policies for complying with the four core components (1. Use of proceeds, 2. Process for Project Evaluation and Selection, 3. Management of Proceeds, 4. Reporting) for alignment with the Green Bond Principles stipulated by the International Capital Market Association (ICMA). This framework has been deemed competent by DNV Business Assurance Japan K.K., an internationally recognized third-party organization that has also confirmed that the framework aligns with the standards put forth in the Green Bond Principles 2021 (ICMA) and the Green Bond Guidelines 2020 (Japan's Ministry of the Environment).
|(1) Total Issued||¥10 billion (Note 2)|
|(2) Term||3 years|
|(3) Date of Issuance||September 2021|
|(4) Lead Managers||SMBC Nikko Securities Inc.
Mizuho Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Nomura Securities Co., Ltd.
Daiwa Securities Co. Ltd.
Shinkin Securities Co., Ltd.
TEPCO Renewable Power, Inc. will promote the domestic and overseas use of renewable energies and contribute to the creation of a carbon neutral society and the development of regional industry by harnessing natural resources to the best of our ability to provide a stable supply of electricity at low cost.
*1 This press release has been written for the expressed purpose of announcing TEPCO's decision to issue corporate bonds to the general public and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product.
*2 The amount of bonds issued is a current estimate as of the day of submission of the securities registration statement