Mizuho Financial Group issued a EUR 500 million green bond on 27 August 2024 with a final maturity date of August 2030, tapping European capital markets to fund environmentally focused projects including renewable energy and other activities consistent with a transition to a lower-carbon economy.
The bond carries a fixed interest rate of 3.460% until an optional redemption date in August 2029, at which point the coupon converts to a floating rate of three-month EURIBOR plus a margin of 1.049% for any remaining period until final maturity in 2030. The optional redemption feature gives Mizuho the right but not the obligation to redeem the instrument a year before final maturity.
BOND ALIGNED WITH ICMA GREEN BOND PRINCIPLES
The transaction was issued under Mizuho's green bond framework, which was renewed in February 2023 and aligned with the International Capital Market Association's Green Bond Principles 2021. Those principles set out four core components: use of proceeds for eligible green projects, a process for project evaluation and selection, management of proceeds, and reporting.
A second party opinion was provided by Sustainalytics, an environmental, social and governance research and ratings firm. Sustainalytics reviewed Mizuho's green bond framework, giving investors an external assessment of it.
USE OF PROCEEDS
The eligible project categories under Mizuho's green bond framework include renewable energy and other environmentally friendly activities that contribute to climate change mitigation in line with internationally recognised standards. Proceeds from the August 2024 bond will be allocated to projects in these categories through the internal selection and monitoring procedures set out in the framework.