Hitachi Capital (UK) issues $40 million debut Green Bond to make a sustainable difference

We’re pleased to support Hitachi Capital in producing their Green Financing Framework and issuing their debut green bond, which underlines Hitachi’s commitment to sustainability.

Hitachi Capital (UK)

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Hitachi Capital (UK) business aligns to the UN Sustainable Development Goals

Hitachi Capital (UK) PLC (HCUK) 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.

HCUK, is committed to make a difference to society by aligning the company’s business to achieve the wide range of sustainability targets set out in the United Nations Sustainable Development Goals (SDGs). In doing so, HCUK focuses on business opportunities that help towards achieving a cleaner, healthier, and sustainable society and has launched numerous projects to help accelerate the transition towards a zero-carbon society.

Green Financing Framework and inaugural Green Bond pave way for HCUK’s green future

To facilitate the funding of green projects, HCUK asked NatWest to advise and support in the role of Joint Green Structuring Bank on the creation of its Green Financing Framework.

After the publication of the framework, NatWest acted as Sole Dealer on HCUK’s 3year, 1,07% $40million senior unsecured Medium Term Note, which was issued as a Green Bond and placed with a single investor, the Dai-ichi Frontier Life Insurance Company, a member of the Japanese Dai-ichi Life Group.

This first Green Bond issuance by HCUK is aligned to its wider vision of financially supporting projects that go towards delivering a net-zero carbon economy. The bond proceeds will be used, amongst other projects, for the conversion of all 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 GRIDSERVE.

Hitachi invests in clean transportation and renewable energy projects

Luke Hasham-Smith, NatWest, commented on the transaction: “We’re very pleased to have supported Hitachi Capital (UK) producing their Green Financing Framework and issuing their debut green bond, which underlines Hitachi Capital UK’s commitment to sustainability. At NatWest we recognise that climate change is a global issue with significant implications for our customers, colleagues, suppliers and partners, and we believe that we have the duty to play a leading role in the transition towards a low-carbon economy and support customers, economies and communities.”

Robert Gordon, CEO of Hitachi Capital (UK) PLC, said: “The 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 we are therefore actively engaged in SDGs investment.”

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