Tuesday 23rd Mar 2021
Hitachi Capital UK Demonstrates Sustainability Strategy With USD 40 Million Debut Green Bond
23 March 2021 – Hitachi Capital (UK) PLC, rated A- by S&P, has today placed a 3 year USD 40 million senior unsecured Medium Term Note with a single investor, with a coupon of 1.07%. The note is issued as a Green Bond under Hitachi Capital UK’s EMTN programme and will be used exclusively for the financing of eligible projects under the recently published Green Financing Framework. The notes were issued to a single investor, Dai-ichi Frontier Life Insurance Co.,Ltd.
The issuance confirms Hitachi Capital UK’s continued commitment to its sustainability strategy, with the Green Financing Framework facilitating the funding of green projects including the provision of leases for Battery Electric Vehicles, Hybrid Solar Farms and Electric Vehicle charging points.
The first Green Bond issuance by Hitachi Capital UK is aligned to its wider vision of financially supporting projects that go towards delivering a net zero carbon economy. Hitachi Capital UK’s sustainable business aspirations include converting 100% of its 62,500+ funded car and small van fleet to Battery Electric Vehicles by 2030 and the rollout of Electric Forecourts®, Hybrid Solar Farms and Electric Hubs across the UK, as part of their relationship with GRIDSERVE.
Hitachi Capital UK obtained an independent Second Party Opinion on its framework from Sustainalytics that confirmed alignment with the Green Bond Principles. NatWest and Nomura acted as joint Green Structuring Banks for the Hitachi Capital UK Framework, with NatWest supporting on the creation of the Green Financing Framework and Nomura supporting on the obtaining of the Second Party Opinion. NatWest acted as Dealer on the MTN issuance.
Robert Gordon, CEO of Hitachi Capital (UK) PLC, said:
“Issuance of our first green bond marks another key milestone in our wider vision of financially supporting clean transportation and renewable energy projects which help accelerate electric mobility and address climate change.
“Through our Green Financing Framework, utilising our financial strength and expertise, our intention is to issue further green bonds aligned to our commitment that 20% of our assets will support sustainable business projects over the next five years.”
Masakatsu Mizukami, Executive Officer of Dai-ichi Frontier Life Insurance Co.,Ltd. said:
“Our company manages assets of JPY8.9 trillion sourced from insurance premiums from customers throughout Japan.
“As a responsible institutional investor, we have a strong belief that promoting responsible investment contributes towards realising a sustainable society and are actively engaged in SDGs investment. “
Notes to Editors
About Hitachi Capital (UK) PLC
Hitachi Capital (UK) PLC is a leading financial services company with over 35 years’ experience in providing innovative finance solutions to enable consumers, SMEs, fleet owners, motor dealers and retailers to grow and prosper. Hitachi Capital (UK) PLC has over 1,500 employees, £5.9bn of net earning assets and over 1.4 million customers across its five business units; Consumer Finance, Vehicle Solutions, Business Finance, Invoice Finance and European Vendor Solutions.
Hitachi Capital (UK) PLC is a wholly owned subsidiary of Hitachi Capital Corporation, one of Japan’s largest non-bank financial institutions. Hitachi Capital Corporation is an affiliate of both Hitachi Ltd, a world leader for manufacturing and technology, and Mitsubishi UFJ Financial Group Inc. Manufacturing continues to be a key part of Hitachi Capital (UK) PLC’s DNA, delivering complex products to high levels of customer satisfaction.
About Dai-ichi Frontier Life
The Dai-ichi Frontier Life Insurance Company, Limited (“Dai-ichi Frontier Life”), a member of the Dai-ichi Life Group, commenced operations in August 2007. Dai-ichi Frontier Life was founded as a manufacturer of insurance for bancassurance market in Japan, and currently boasts a top-class market share. As of March 31, 2020, total assets were ¥8.9 trillion (USD$82.2 billion). Based in Tokyo, Dai-ichi Frontier Life has approximately 450 employees and branches located in Hokkaido, Nagoya, Osaka, Hiroshima and Fukuoka.