ESG finance
Overview of the Transition Bond
| Bond Issued | the 15th debenture bond(Transition Bond) | the 16th debenture bond(Transition Bond) |
|---|---|---|
| Issue amount | 10 billion yen | 10 billion yen |
| Maturity | 5 years | 10 years |
| Issuance date | July 14, 2022 | July 14, 2022 |
| Interest rate | 0.480% | 0.879% |
| Use of Capital |
・ Projects which meet the qualifying criteria set forth in the Idemitsu Kosan Co., Ltd. Green/Transition Bond Framework (new expenditures and refinancing of existing expenditures) ・ Turning refineries into CNX center*1(SAF*2, etc.), Power and renewable energy projects, low carbon solutions projects for coal-fired power generation, etc. |
|
| Third-party appraisal organization | DNV Business Assurance Japan K.K. | |
| Lead underwriters |
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. ・ Daiwa Securities Co. Ltd. Co., Ltd. ・ Mizuho Securities Co., Ltd. Co., Ltd. |
|
| Structuring agent | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | |
| Bond rating | A (R&I) | |
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CNX (Carbon Neutral Transformation) Center: Plan to transform our facilities such as refineries and plants to supply bases for next-generation energies with renewable energy, ammonia, biofuel, synthetic fuel, etc.
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SAF: Sustainable Aviation Fuel
Third-party assessment of eligibility
Second party opinion
We have, beforehand, formulated a green / transition bond framework, and through DNV Business Assurance Japan K.K., obtained second party opinions such as "Green Bond Principles 2021 (ICMA)", "Ministry of Environment Green Bond Guidelines 2020", "Climate Transition Finance Handbook 2020 (ICMA)" and "Basic Guidelines on Climate Transition Finance (May 2021)” announced by the Financial Services Agency, Ministry of Economy, Trade and Industry, Ministry of the Environment, upon issuing corporate bonds.
Ministry of Economy, Trade and Industry Model Project Selection
Idemitsu’s corporate bond was selected to be “FY2021 Climate Transition Finance Model Case" as the first model case in oil sector by the Ministry of Economy, Trade and Industry.
Transition Bond and Framework
Reporting
Allocation Report
| Procured appropriations | 19.9 billion yen (amount excluding issuance expenses) |
|---|---|
| Appropriations used*1 | 19.9 billion yen |
| Appropriations to be used | 0.0 billion yen |
| Project No. | Project category |
Appropriations Use *1 (Refinance) |
Impact Metric |
|---|---|---|---|
| 1 |
Power and Renewable Energy (geothermal & solar) |
2.4 billion yen (2.2 billion yen) |
・Equipment capacity (MW) ・Power generation performance (kwh) ・CO₂ reduction amount/reduction contribution amount |
| 2 | Low-carbon Solutions for Replacing Coal-fired Power Generation | 5.6 billion yen (5.6 billion yen) |
・CO₂ reduction amount/reduction contribution amount ・Project progress status |
| 3 | Development of Functional Material Products | 11.9 billion yen (9.0 billion yen) | ・Progress of the eligible project |
| Total | 19.9 billion yen (16.8 billion yen) | ||
Impact Report
[Project NO.1] Power and Renewable Energy
Impact Metric
| Project category |
Installed Capacity (MW) (Idemitsu Equity) |
Actual Power Generation (kwh)*1 (Idemitsu Equity) |
Environmental improvement effect *2 (Annual CO₂ emission reduction) |
|---|---|---|---|
|
Power and Renewable Energy (geothermal & solar) |
31.9MW (23.3 MW) |
133,795 MWh (67,728 MWh) |
35,589 t-CO₂ |
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The planned amount of power generation is included in the figures.
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Calculation method: Power generation (MWh) × CO₂ emission factor (t-CO₂/MWh)
The CO2 emission coefficient is the difference between the CO2 emission coefficient of the electricity company to which renewable energy is sold and the CO2 emission coefficient associated with project execution.
[Project NO.2] Low-carbon Solutions for Replacing Coal-fired Power Generation
Impact Metric
| Project category |
Amount of Idemitsu Green Energy Pellets (Black pellet) Produced *1 |
Environmental improvement effect *2 (Annual CO₂ emission reduction) |
|---|---|---|
|
Low-carbon solutions for replacing coal-fired power generation |
120,000 tons | 191,302 t-CO₂ |
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Planned amount
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Calculation method: "Amount of black pellets (ton) × CO2 emission coefficient of black pellets (t-CO2/ton)" and "Amount of coal replaced by black pellets (ton) × CO2 emission coefficient of coal (t-CO2/ton)" ” difference.
Progress of the Eligible Project
Our first commercial plant in Vietnam commenced its commercial operation in October 2025.
Related link: Supply ofblack pellets(biomass fuel)[Project NO.3] Development of Functional Material Products
Progress of the Eligible Project
DNV TRANSITION BOND PERIODIC REVIEW (July 2023)
We have obtained a review from DNV Business Assurance Japan, an independent external reviewer, to evaluate whether its reporting is aligned with our framework.