On September 1, 2023, Development Bank of Japan Inc. ("DBJ") issued its USD 600 million, fifteenth sustainability bond (the 94th MTN). Sustainability bonds are any type of bond instrument where the proceeds or an equivalent amount will be exclusively applied to finance or re-finance a combination of both green and social Projects. This bond marks the fifteenth sustainability bond issuance by DBJ.
In terms of environmental aspect, beginning with antipollution measures implemented in the late 1960s and early 1970s, DBJ has provided loans and investments for environmental projects over the past 50 years. The DBJ Environmentally Rated Loan Program (ERLP) was incorporated into our product lineup in fiscal 2004, with DBJ Green Building Certification (GBC) following in fiscal 2011.
In terms of social aspect, we have responded to the crises such as natural disasters including the Great East Japan Earthquake, the global financial crisis and the outbreak of COVID-19.
DBJ issued its inaugural Green Bond in 2014 and Sustainability Bonds from 2015 to 2020 in a successive manner. Information on the Sustainability Bond Framework is available on our website.
Sustainability ratings company ISS ESG has provided a second-party opinion on the DBJ Sustainability Bond framework. More information on these is available on our website.
By investor type, the distribution was as follows: central banks and other official institutions 45%, banks 24%, asset managers 25%, insurances and pensions 3% and others 3%. By geographical type, it was as follows: EMEA 68%, APAC 20% and Americas 12%.
In accordance with its Policy on Sustainability, which focus on the practice of sustainability management, DBJ commits to continuously issuing sustainability bonds in the future. In line with our "Design the Future with Financial Expertise" corporate philosophy, DBJ will actively support clients that exhibit high environmental and social awareness.
The main terms of the bonds
| Issuer | Development Bank of Japan Inc. |
| Market | Global Market(144A/Reg.S) |
| Issue amount | USD 600 million |
| Maturity | 3 years (due on September 1, 2026) |
| Coupon | 5.125% |
| Re-offer price | 99.815% |
| Listing | Luxembourg Stock Exchange Euro MTF |
| Lead managers | Barclays Bank PLC Citigroup Global Markets Limited Goldman Sachs International Mizuho Securities USA LLC |
| Signing date | August 22, 2023 |
| Closing date | September 1, 2023 |
| Bond ratings | A1: Moody's, A: S&P |
| This communication does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Japan or any other jurisdiction where such an offer or solicitation would be unlawful. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration, and any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the issuer and management, as well as financial statements. The securities referred to herein have not been and will not be registered under the Securities Act. |
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