Mitsubishi Materials Corporation (MMC) establishes the Transition-Linked Finance Framework (the framework) to promote our efforts to achieve carbon neutrality.
Transition-Linked Finance is a bond or loan with an unrestricted use of proceeds, in which a Company has developed a long-term strategy to achieve a decarbonized society, sets targets in line with its transition strategy, and may change its financial and/or structural characteristics depending on the degree of achievement of targets.
Based on the framework, we execute the Transition-Linked Bond and Transition-Linked Loan.
We have obtained a second-party opinion from Japan Credit Rating Agency, Ltd. (JCR) , which is an independent external institution on the framework’s conformance.
Transition-Linked Finance Framework（2,451KB）
* This data is only available in Japanese on the website.
The Group has set out its GHG emissions reduction targets (Scope 1 + Scope 2) of 47% reduction from compared the fiscal year ended March 2021 level by the fiscal year ending March 2031, excluding GHG emissions from resource recycling efforts. We also aim to achieve carbon neutrality including GHG emissions from resource recycling efforts by the fiscal year ending March 2046. To achieve carbon neutrality by the fiscal year ending March 2046, we have set a target to achieve a 100% renewable energy usage rate for electricity by the fiscal year ending March 2036.
In order to raise the necessary funds to achieve the goals and promote our efforts to achieve carbon neutrality, we has issued the Transition-Linked Bond and has executed Transition-Linked Loan.
| Tenor | 5 years |
|---|---|
| Issue Amount | \20 billion |
| Amount of Each Bonds | \100 million |
| Issue Price | \100 per face value of \100 |
| Coupon | 0.863％ per annum |
| Pricing Date | November 22, 2023 |
| Issue Date | November 29, 2023 |
| Maturity Date | November 29, 2028 |
| Interest Payment Date | 29th each of May and November annually |
| Credit Rating | A- (Japan Credit Rating Agency, Ltd.（JCR）) |
| KPI | Renewable energy utilization rate*1 |
| SPT*2 | Achieve 30％ renewable energy utilization rate by FYE March 2026 Determination date: At the end of August 2026 |
| Lead Managers | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. / Mizuho Securities Co., Ltd. / Nomura Securities Co., Ltd. / Daiwa Securities Co. Ltd. |
| Structuring Agent | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| Trustee | MUFG Bank, Ltd. |
| Tenor | 5 years |
|---|---|
| Issue Amount | \15 billion |
| Amount of Each Bonds | \100 million |
| Issue Price | \100 per face value of \100 |
| Coupon | 0.856％ per annum |
| Pricing Date | April 18, 2024 |
| Issue Date | April 24, 2024 |
| Maturity Date | April 24, 2029 |
| Interest Payment Date | 24th each of April and October annually |
| Credit Rating | A- (Rating and Investment Information, Inc. （R&I）) |
| KPI | Renewable energy utilization rate*1 |
| SPT*2 | Achieve 30％ renewable energy utilization rate by FYE March 2026 Determination date: At the end of August 2026 |
| Lead Managers | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. / Mizuho Securities Co., Ltd. / Nomura Securities Co., Ltd. / Daiwa Securities Co. Ltd. |
| Structuring Agent | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| Trustee | MUFG Bank, Ltd. |
| Loan Amount | ¥20 billion |
|---|---|
| Execution Date | February 13, 2024 |
| KPI | GHG emission reduction rate for Scope 1 and Scope 2 |
| SPT | 47% reduction of Scope 1 and 2 GHG emissions by FYE March 2031 (Base year: FYE March 2021) (Excluding GHG emissions from resource recycling efforts) *3 |
| Arranger | MUFG Bank, Ltd. |
| Co-arranger | Mizuho Bank, Ltd. |
| Lender | MUFG Bank, Ltd. / Mizuho Bank, Ltd. / Development Bank of Japan Inc. / The Norinchukin Bank / The Hachijuni Bank, Ltd. / The Chiba Bank, Ltd. / THE TOHO BANK, LTD. |
| Structuring Agent | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| Loan Characteristics | An interest subsidy of up to 0.2% will be granted by the government if the SPT is achieved |
The following table shows the actual performance of the KPIs and the achievement of the SPTs. In addition, for the fiscal year ended March 2024 results, a third-party assurance has been obtained from Sustainability Accounting Co., Ltd.
| FYE March 2021 | FYE March 2022 | FYE March 2023 | FYE March 2024 | |
|---|---|---|---|---|
| Percentage of electricity from renewable energy sources | 0% | 2% | 4% | 17% |
| Total GHG emissions in Scope1 and Scope2 | 935 kilotons-CO2e | 949 kilotons-CO2e | 902 kilotons-CO2e | 887 kilotons-CO2e |
| GHG emission reduction rate in Scope1 and Scope2 (Base year: FYE March 2021) |
－ | ▲1% | 3% | 5% |
For information on our latest sustainability strategy, please refer to the below.