Hitachi, a key player in Japan's corporate landscape, recently issued five-year green bonds with a competitive coupon rate of 0.598%. Notably, Nippon Life Insurance has shown confidence in this sustainable financial approach by acquiring half of the $68 million offering.
Landscape view of Tokyo. AI generated image.
This marks the second instance of corporate-focused bond issuance following the Japan Exchange Group's launch of $3,55 million (¥500 million) in digital bonds in June 2022. Emiri Matsuo from Hitachi's treasury division financing department revealed a diverse investor base, including life insurers, central public institutions, and other corporates. Matsuo expressed the likelihood of future offerings of such securities.
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A noteworthy development is the creation of a bank-funded blockchain platform dedicated to digital securities. Scheduled to commence trading by the end of December 2022, this platform signifies a step towards embracing technological advancements in financial markets.
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Japan's corporate debt market is undergoing a transformative phase, embracing innovative issuance methods to meet the rising demand. Hitachi's strategic move involves leveraging the Green Tracking Hub mechanism to enhance transparency in the environmental impact of green projects. This initiative involves recording and managing data on energy reduction and CO2 avoidance, supporting carbon offsetting by business corporations.
The Green Tracking Hub, a collaborative effort by Hitachi and JPXI, incorporates a blockchain provided by BOOSTRY. This synergy enables investors to seamlessly assess the environmental impact of the bonds, underscoring a commitment to sustainability in financial practices.
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