Green bond
Sumitomo Mitsui Trust Bank, Limited (hereinafter "SuMi TRUST Bank") has issued its first Green Bond (EUR) on September 25, 2018. Since then, SuMi TRUST Bank issued Green Bonds as shown on Track Record in overseas markets.
Green Bond
A Green Bond is a bond whose proceeds are used solely to fund projects that will contribute to improvement of environmental issues, such as renewable energy, including solar power and wind power generation, as well as environmentally friendly property.
In response to the growing initiatives to address environmental issues by companies and investors in Japan and overseas, SuMi TRUST Bank recognizes that financial support toward these initiatives is a part of its responsibilities as a financial institution.
SuMi TRUST Bank believes that its contribution to building a sustainable society will provide value to its stakeholders, through its issuance of Green Bond and the allocation of the proceeds to loans to clients of SuMi TRUST Bank.
Green Bond Framework
SuMi TRUST Bank issues and manages its Green Bond under the framework that SuMi TRUST has developed in line with the Green Bond Principles 2018 published by the International Capital Market Association and the Green Bond Guidelines 2020 published by the Ministry of the Environment of Japan.
SuMi TRUST Bank obtained the Second Party Opinion regarding the framework from an external consultant.
Framework Overview
SuMi TRUST Bank has developed the framework which addresses the four core components of the Green Bond Principles: use of proceeds, project evaluation and selection process, management of proceeds, and reporting.
①Use of proceeds
The proceeds of Green Bond will be used to projects which meet all of the following ("Eligible Green Projects").
- A project is in one or more of the Eligible Project Categories (a) to (e) as shown below;
- For any project categorized as (a) to (d) below, a project is categorized as Category B or Category C under the Equator Principles (*) as published by the Equator principles Association. For Category (e), a building receives certification, such as "LEED", "BREEAM" or "CASBEE" to a level of at least "LEAD Gold", "BREEAM Excellent" or "CASBEE A Level", "DBJ Green Building Certification 4 Star" or "BELS 4 Star", respectively;
- Financing disbursed by SuMi TRUST Bank to a project which has taken place either (a) within 24 months prior to the relevant issue date of Green Bond or (b) after the issue date of Green Bond but before the maturity date of the bond.
(a)Renewable Energy
(b)Energy Efficiency
(c)Clean Transportation
(d)Pollution Prevention and Control
(e)Green Building
②Project evaluation and selection process
- SuMi TRUST Bank applies the Equator Principles and recognized third party green building certificates in evaluation and selecting projects.
- Project evaluation and selection process includes several teams and departments.
③Management of proceeds
- The proceeds of Green Bond are allocated to the financing of Eligible Green Projects. Pending the allocation of the proceeds of Green Bond to finance Eligible Green Projects, the proceeds will be invested in overnight or otherwise short-term financial instruments.
- SuMi TRUST Bank will monitor the proceeds of Green Bond and track allocation to Eligible Green Projects.
④Reporting
- During the life of any relevant Green Bond, SuMi TRUST Bank will publish on a website information relating to the allocation of the proceeds of Green Bond and the Second Party Review from an external consultant at least annually.
- In addition, SuMi TRUST Bank will also publish on a website information and assessment relating to the environmental impacts of financing Eligible Green Projects at least once a year. SuMi TRUST Bank intends to report on the tones of CO2 emission equivalent avoided.
Please see below for the details on Green Bond Framework.
Sumitomo Mitsui Trust Bank Green Bond Framework
Framework Overview and Second-Party Opinion on Sumitomo Mitsui Trust Bank Green Bond
Track record on Green Bond
| Issue Date | Issue Amount | Maturity Date | Reporting | |
|---|---|---|---|---|
| Allocation of the use of proceeds, Environmental Impacts | Second-Party Opinion | |||
| March 25, 2021 | USD 500 million | March 25, 2026 |
SMTB Green Bond Annual Report 2021 SMTB Green Bond Annual Report 2022 SMTB Green Bond Annual Report 2023 |
Sustainalytics Annual Review SMTB2021 Sustainalytics Annual Review SMTB2022 Sustainalytics Annual Review SMTB2023 |
| Ｍarch 10, 2022 | USD 500 million | March 10, 2027 |
SMTB Green Bond Annual Report 2022 SMTB Green Bond Annual Report 2023 |
Sustainalytics Annual Review SMTB2022 Sustainalytics Annual Review SMTB2023 |
| Ｍarch 9, 2023 | USD 500 million | March 9, 2028 |
SMTB Green Bond Annual Report 2023 |
Sustainalytics Annual Review SMTB2023 |
Please see below for the reports on the redeemed green bonds.
| Issue Date | Issue Amount | Maturity Date | Reporting | |
|---|---|---|---|---|
| Allocation of the use of proceeds, Environmental Impacts | Second-Party Opinion | |||
| September 25, 2018 | EUR 500 million | September 25, 2020 (Redeemed) |
SMTB Green Bond Annual Report 2019 SMTB Green Bond Annual Report 2020 |
Sustainalytics Annual Review SMTB2019 Sustainalytics Annual Review SMTB2020 |
Note
All information in this material prepared by SuMi TRUST Bank has been prepared for informational purposes only and is not a solicitation of any offer to buy or sell any bonds or other financial instrument. Investing in securities involves risks, and, when you invest in securities, there is always the potential of losing all or a portion of your invested money. Before acting on any information in this material, you should carefully consider whether it is suitable for your particular circumstances and objectives, including but not limited to whether it is consistent with your understanding or expectation with respect to any details of specific green bonds relevant to you, and, if necessary, seek professional advice.