Tokyo -- Kawasaki Heavy Industries, Ltd. announced today its first transition bond issuance as a means of financing via the Master Framework,* which the company established in November 2023 as the first fund-raising framework of its kind worldwide.
Transition bonds are bonds issued for the purpose of financing projects based on a long-term transition strategy aimed at reducing corporate greenhouse gas emissions. Funds raised through public offerings of these bonds domestically within Japan will be used for projects related to the clean transport and storage of hydrogen and clean energy utilization of hydrogen. Specific solutions include liquefied hydrogen carriers, liquefied hydrogen storage tanks, and hydrogen gas turbines for power generation. Through the provision of such decarbonization solutions, Kawasaki will promote the transition to carbon neutrality not only within its own organization, but among its customers as well, thus contributing to the early realization of worldwide carbon neutrality. The company's bond issuance has been selected for support under the Ministry of Economy, Trade and Industry's FY2023 Subsidy for Global Warming Countermeasures Promotion Project.
Bond Issuance Overview Issuer Kawasaki Heavy Industries, Ltd. Bond term 5 years Issuance amount ¥10 billion Purpose for funds Usage in projects related to clean energy utilization of hydrogen, as well as clean transport and storage of hydrogen (planned) Issuance period February 2024 (planned) Underwriters Mizuho Securities Co., Ltd., SMBC Nikko Securities Inc., Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Structuring Agent Mizuho Securities Co., Ltd.
Based on the "Group Vision 2030: Trustworthy Solutions for the Future," Kawasaki is striving to provide innovative solutions in a timely manner to society, while also pursuing speedy action and new challenges in ways that transcend various boundaries in order to realize continuing growth. Through sustainable finance measures which include the issuance of transition bonds, the company will provide financial support for the above initiatives. Furthermore, as a leading company in sustainable finance, Kawasaki will contribute to the spread of such financing throughout Japan and the rest of the world.
* A fund-raising framework that covers six types of sustainable finance: Green, Transition, Transition Linked, Blue, Social, and Sustainability Linked. A second opinion regarding this framework has been obtained from the Japan Credit Rating Agency, Ltd.
Kawasaki Heavy Industries, Ltd. specializes in manufacturing and marketing of transportation and industrial machines equipments. Net sales break down by activity as follows:
- sale of motorcycles and engines (29.8%);
- sale of aerospace equipments (19.9%): aircrafts, helicopters, missiles, electronic equipments, monorails, etc.;
- sale of gas turbines (19.8%): turbines for naval, marines and industrial applications, generators, propulsion systems, etc. The group also develops naval construction activity (construction of ships, submarines, bulk carriers, oil tankers, etc.);
- sale of precision machines (16.8%): primarily hydraulic machines. The group is also developing a manufacturing of industrial machinery activity (tunnel boring machines, curling machines, grinding machines, etc.);
- sale of railway equipments (8.4%): train cars, electric and diesel locomotives, monorails, etc.;
- other (5.3%).
KAWASAKI HEAVY INDUSTRIES, LTD. 
