Nidec Decides Terms of Senior Unsecured Bonds Denominated in Euro (Green Bond)
Nidec Corporation (TSE: 6594; OTC US: NJDCY) plans to issue €500 million in senior unsecured Euro-denominated Green Bonds to fund electric vehicle (EV) traction motors. This marks the first euro-denominated bond issuance by a Japanese company. The proceeds will support capital expenditures and R&D expenses associated with the production of EV traction motors, contributing to decarbonization efforts in the automotive industry. The bonds will be offered to institutional investors and aimed at diversifying financing methods.
- First-ever issuance of Euro-denominated bonds by a Japanese company.
- Funds raised will directly support R&D and capital expenditures for EV traction motors.
- Increases company’s green financing and investor base.
- None.
KYOTO, Japan, March 19, 2021 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company”) today announced the plan to issue senior unsecured bonds denominated in Euro (Green Bond*1) (the “Bonds”) in the overseas securities markets in order to raise funds for the production of traction motors for electric vehicles (EVs). This issuance will be the first ever issuance of euro-denominated Bonds by a Japanese business company, and the volume of the issuance is planned to be
1. Objective and Background
As the impact of climate change becomes more serious, the automobile industry is accelerating its efforts for decarbonization. Europe, China, and other countries all around the world have successively announced policies prohibiting sale of new petrol- and diesel-powered vehicles, while at the same time promoting vehicle electrification and a shift to electric vehicles (EVs).
As the “world’s No.1 comprehensive motor manufacturer,” the Company has been engaged in the reduction of the world’s CO2 emissions through provision of environmentally friendly products with energy-saving and long-life features, typified by energy-efficient brushless DC motors. Further, currently, the Company is positioning its automotive motor business as one of the Company’s key strategic business activities, and puts particular effort into, among other things, the electric vehicle (EV) traction motor system, “E-Axle,” which is expected to grow rapidly in the coming years. The Company’s E-Axles are characterized by being compact and light-weight as a result of their fully integrated designs that combine motors, inverters, and gears.
Through the issuance of the euro-denominated Bonds mainly for investors in Europe, in addition to the issuance of the yen-denominated green bonds in November 2019, the Company is attempting to diversify its financing methods and broaden its investor base, and also will make further contributions to the realization of a decarbonized society.
2. The details are as follows:
| Euro-denominated senior unsecured bonds due 2026 (Green Bond) | |
| 1. Total Principal Amount | |
| 2. Term to Maturity | 5 years |
| 3. Use of Proceeds | Capital expenditures and R&D expenses for the production of traction motors for electric vehicles (EVs) |
| 4. Eligibility of Green Bond Framework | The company has obtained the Second Party Opinion for the criteria set forth by the International Capital Market Association (ICMA) in its Green Bond Principles 2018 (GBP) and Japan's Green Bond Guidelines 2017 from Sustainalytics, a third-party verification provider. |
| 5. Method of Offering | Offerings made to institutional investors in overseas securities markets such as Asia and Europe (overseas private placement under Regulation S of the U.S. Securities Act of 1933, as amended (the “Securities Act”)) |
| 6. Listing | To be listed on the Luxembourg Stock Exchange’s Euro MTF Market. |
This press release has been prepared for the sole purpose of publicly announcing the Company’s plan to issue the Bonds, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan. This press release is not an offer of securities for sale in the United States. The Bonds referred to above have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any relevant securities law of any state, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the Securities Act) absent registration or an exemption from the registration requirements under the Securities Act. No public offering of the securities will be made in the United States or any other jurisdiction.
| Contact: | |
| Masahiro Nagayasu | |
| General Manager | |
| Investor Relations | |
| +81-75-935-6140 | |
| ir@nidec.com | |
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*1 Bonds issued to raise funds required for business activities that help solve environmental problems such as global warming.
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