Mar. 03, 2023
Nippon Steel Corporation
Nippon Steel Corporation announced today that it has determined the terms and conditions for the issue of its 7th and 8th Series of Unsecured Straight Bonds (with inter-bond pari passu clause)(Green Bond) as outlined below.
1.Summary of the Green Bond
Series name |
Nippon Steel Corporation 7th Series Unsecured Straight Bonds (Green Bond) |
Nippon Steel Corporation 8th Series Unsecured Straight Bonds (Green Bond) |
---|---|---|
Total amount of issue |
JPY 30 billion |
JPY 20 billion |
Denomination of each bond |
JPY 100 million |
|
Issue price |
100% of the principal amount |
|
Redemption price |
100% of the principal amount |
|
Interest rate |
0.564% per annum |
1.150% per annum |
Maturity date |
March 17, 2028 |
March 18, 2033 |
Offering period |
March 3, 2023 |
|
Payment date |
March 9, 2023 |
|
Method of offering |
Public offering in Japan |
|
Method of redemption |
(1)Bullet maturity (2)Retirement by purchase |
|
Collateral |
The bonds are not secured by any pledge, mortgage or other charge on any assets or revenues of the Company or
of others, nor are they guaranteed. There are no assets reserved as security for the bonds. |
|
Financial covenants |
Negative pledge clauses (with inter-bond pari passu clause) attached |
|
Interest payment dates |
March 20 and September 20 of each year |
|
Use of proceeds |
Funds for production facilities for non-oriented electrical steel sheets for eco-friendly car motors. (A part of the proceeds will be allocated to replenish cash reserves previously used for to fund the construction of the cited production facilities) |
2. Formulation of a green bond framework and obtaining external evaluations
Nippon Steel has formulated the Nippon Steel Corporation Green Bond Framework1 in accordance with the International Capital Market Association (ICMA)’s “Green Bond Principles 2021” and the Ministry of the Environment's “Green Bond Guidelines 2022”.
The Framework has obtained a second-party opinion2 from Rating and Investment Information, Inc., a third-party evaluation organization, stating that it complies with various standards for green bond issuance.
3. Sustainable Finance website
Nippon Steel has launched a new website with information on the Green Bond. Future sustainable finance activities will also be published on the website.
Nippon Steel positions its efforts concerning climate change as a top priority management issue, and has laid out its strategic initiatives in the Nippon Steel Carbon Neutral Vision 2050. Sustainable finance will be utilized as one of the finance method to steadily advance the company’s efforts toward carbon neutrality.
Sustainable Finance HP 【https://www.nipponsteel.com/en/ir/stock/sustainablefinance.html】
Green Bond HP【https://www.nipponsteel.com/en/ir/stock/sustainablefinance/gb.html】