Financial Well-being and Sustainable Growth
For Our Clients: Solutions tailored to client needs (1)
NOMURA
Sustainability-linked bonds are a new type of financing that don't limit the use of funds and can be offered
to a wide range of clients
Global issuance was over $100bn in 2021 and is expected to remain roughly the same in 2022
Key points of sustainability-linked bonds
No specified use of funds
Specific numerical targets set
(KPI/sustainability performance
target (SPTS))
Financial conditions and
structure change according to
level of targets achieved
Issuance of sustainability-linked bonds
(billions of dollars)
The
Sustainability-Linked
Bond Principles
120
100
80
60
40
20
20
Estimated annual
issuance
2019
2020
2021
2022
Jan-Jul
Supported several sustainability-linked bond transactions in Japan
Obayashi Corporation
Y30bn (5-Yr Y20bn; 7-Yr Y10bn)
Structuring Agent
✓ KPI: CO2 reduction in Group's scope
✓ SPTS: CO2 reduction vs. FY2019
✓ Features: If targets not reached, a donation
equivalent to a predetermined percentage of
the bond issuance value to be donated to an
organization set up for the purpose of
environmental conservation
April 2022
Nagase & Co.
Y10bn (10-Yr)
Structuring Agent
KPI: GHG emissions in Group's scope
✓ SPTs: Reduction of Group's GHG emissions
✓ Features: If targets not reached, until
redemption the company will purchase
emissions rights with a value according to
progress in reaching SPTS
June 2022
NOMURA
Shiga Prefecture
Y5bn (10-Yr)
✓ SPTs: Reduce GHG emissions by 50%
compared to FY2014
✓ Features: If targets not reached, make
additional commitment equivalent to 0.1% of
value of bond issuance as funds for projects
set up by Shiga Prefecture to reduce GHGS
April 2022
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