Green bonds are bonds in which its proceeds are used solely for the purpose of providing finance for environment–friendly projects (hereinafter "Green Projects") such as those concerning renewable energy, 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 framework, which is in line with the Green Bond Principles 2017 published by the International Capital Market Association and the Green Bond Guidelines 2017 published by the Ministry of the Environment of Japan. We have obtained an external institution's opinion with respect to this framework.
- *Due to the organizational change in April 2018, the CSR planning function of the Corporate Communications Department was transferred to the Strategic Planning Department (the Sustainability Office).
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|1. Use of Proceeds||
An amount equal to the net proceeds from any sale of green bond will be used to fund projects which will meet all of the conditions below (hereinafter "Eligible Green Projects").
|2. Project Evaluation and Selection Process||
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 project finances offered by MHBK, 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 from the sale 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||So long as any tranche of green bonds remains outstanding, MHFG will provide information on the allocation of the net proceeds of those bonds, to be updated at least annually, as confirmed in the above Process 3. It will be accompanied by a report from an independent accountant in respect of the independent accountant's assurance of management's assertion. Also, MHFG intends to report, where feasible and when available, on the environmental impact of Eligible Green Projects. In the case of Renewable Energy projects, MHFG intends to report tons of CO2 emission equivalent avoided.|
|Issue Date||Issue Amount||Maturity||Interest Rate|
|October 16, 2017
||EUR 500 million||7 years||0.956%|
|Base Date||Allocation of Net Proceeds||Environmental Impact|
|March 31, 2018||Environmental Impact (March 2018)|
|March 31, 2019||Environmental Impact (March 2019)|
All information in these materials 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. 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 they will come to pass.