Watches
Here we outline our four businesses, through which we contribute widely to the lives of people around the world.
Machine tools
Citizen began production of machine tools in 1936, utilizing the technologies and know-how developed through the manufacture of watch parts. Our products contribute to the development of manufacturing industries all over the world.
Corporate Philosophy
Loved by citizens, working for citizens.
CITIZEN's corporate philosophy, "Loved by citizens, working for citizens" is to
deeply contribute to the lives of people around the world through the manufacturing of products that are loved and trusted by citizens.
Message From President & CEO
Crafting a new tomorrow Towards sustainable value creation
IR Library
CITIZEN REPORT(Integrated Report)
Top Management
By further promoting sustainable management, we aim to become a company that can create value sustainably
Sustainability Management
CITIZEN Group’s Sustainable Management
- TOP
- Sustainability
- Sustainability Management: Sustainability-linked Bonds
Sustainability-linked Bonds
Sustainability-linked Bonds
The Company decided to issue bonds whose terms vary depending on whether a predetermined sustainability performance target is achieved or not, in order to promote its actions to address climate change, which is one of its material issues. The Company selected the rate of reduction of greenhouse gas emissions (Scope 1 and 2) as the KPI for the bonds, believing that achievement of this target will contribute to realization of the Group Vision. Through issuance of the bonds, the Company will promote global environmental management to achieve the SDGs and will contribute to the realization of a decarbonized and resource-recycling society that is safe, secure and fulfilling for people.
What is a Sustainability-linked Bond?
Sustainability-linked bonds are issued under terms that vary depending on whether predetermined sustainability or ESG targets are achieved or not. The issuer of the sustainability-linked bonds will work to achieve its sustainability goals according to a specified timeline. Specifically, sustainability-linked bonds are financial instruments based on the evaluation of future performance using key performance indicators (KPIs) and sustainability performance targets (SPTs)* predetermined by the issuer. The terms of the bonds vary depending on whether or not the SPTs, which are set as target figures to be achieved for the KPIs, have been achieved.
- * Targets based on the issuer's management strategy which determines the terms of issuance of the sustainability-linked bonds
Overview of Sustainability-linked Bonds
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| Name | The 4th Unsecured Bonds of Citizen Watch Co., Ltd. (Sustainability-Linked Bond) |
|---|---|
| Maturity | 5 years |
| Amount | 10.0 billion yen |
| Interest rate | 0.578% |
| Determination date of issuance terms | September 13, 2023 |
| Issue date | September 20, 2023 |
| Redemption date | September 20, 2028 |
| KPI | Rate of reduction in the Group's greenhouse gas emissions (Scope 1 and Scope 2)*
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| SPT | 33.6% reduction in greenhouse gas emissions (from FY2018 level) by FY2026 |
| Characteristics of the bond after assessment | If the sustainability performance target (SPT) is not achieved as of the assessment date (October 31, 2027), the characteristics of the Bonds vary and will have either or both of the characteristics described below. The Company will decide between (i) and (ii) below for the variable characteristics on or after the abovementioned assessment date. |
(i) If the SPT is not achieved, the Company will donate an amount equivalent to 0.1% of the SLB issue amount to a public interest incorporated association, a public interest incorporated foundation, an international institution, a local government authorized NPO, a local government, etc. for the purpose of environmental conservation activities* by the redemption date of the Bonds.
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(ii) If the SPT is not achieved, the Company will purchase emission rights (credits or certificates representing greenhouse gas emissions reductions*) in an amount equivalent to 0.1% of the SLB issue amount by the redemption date of the Bonds.
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| Rating acquired | A (Rating and Investment Information, Inc.) |
| Lead underwriters | Nomura Securities Co., Ltd. (Lead Managing Underwriter), Mizuho Securities Co., Ltd., SMBC Nikko Securities Inc., Okasan Securities Co., Ltd. |
| Structuring agent*1 | Nomura Securities Co., Ltd. |
| Third-party evaluation | The Company obtained a third-party opinion from Rating && Investment Information, Inc. (R&I) to the effect that the Bonds complies with the Sustainability-Linked Bond Principles 2023 of the International Capital Market Association (ICMA) and the Sustainability- Linked Bond Guidelines 2022 of the Ministry of the Environment of Japan. |
| Framework |
Sustainability Linked Bond Framework (Japanese) (PDF: 1.20MB)
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| News Release | August 24, 2023 Notice Regarding Issuance of Sustainability-linked Bonds (PDF: 2.34MB)
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| September 13, 2023 Notice Regarding Determination of Issue Terms of Sustainability-linked Bonds (PDF: 183MB)
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- An entity that supports the issuance of sustainability-linked bonds through the establishment of a sustainability-linked bond framework, and advice on obtaining second-party opinions, etc.
Appropriateness as Sustainability-linked Bonds
The Company formulated the Sustainability-Linked Bond Framework for the issuance of the bonds and obtained a third-party opinion from Rating & Investment Information, Inc. (R&I) to the effect that the framework complies with the Sustainability-Linked Bond Principles of the International Capital Market Association (ICMA) and the Sustainability- Linked Bond Guidelines and the Sustainability-Linked Loan Guidelines of the Ministry of the Environment of Japan.