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 Scope 2) as the key performance indicator (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.
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 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.
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Name | The 4th Unsecured Bonds of Citizen Watch Co., Ltd. (Sustainability-Linked Bond [SLB]) |
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Maturity | 5 years |
Amount | 10.0 billion yen |
Interest rate | 0.578% per year |
Determination date of issuance terms | September 13, 2023 |
Issue date | September 20, 2023 |
Redemption date | September 20, 2028 |
KPI | Rate of reduction in The CITIZEN 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 SPT is not achieved as of the assessment date (October 31, 2027), the characteristics of the Bonds will vary and 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 and Investment Information, Inc. (R&I) to the effect that the Bonds comply with Sustainability-Linked Bond Principles 2023 of the International Capital Market Association (ICMA) and Sustainability-Linked Bond Guidelines 2022 of the Ministry of the Environment of Japan. |
Framework |
Sustainability-Linked Bond Framework (in Japanese only) (PDF: 1.20 MB)![]() |
News releases | August 24, 2023 Notice Regarding Issuance of Sustainability-linked Bonds (PDF: 1.16 MB) ![]() |
September 13, 2023 Notice Regarding Determination of Issue Terms of Sustainability-linked Bonds (PDF: 118 KB) ![]() |
The Company formulated the Sustainability-Linked Bond Framework for the issuance of the Bonds and obtained a third-party opinion from Rating and 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.