Kawasaki to issue transition bonds, hydrogen projects to benefit

Japan’s Kawasaki Heavy Industries is set to issue transition bonds, with funds raised through public offerings of these bonds domestically within Japan to be used for projects related to the clean transport and storage of hydrogen and clean energy utilization of hydrogen. Specific solutions include liquefied hydrogen carriers, liquefied hydrogen storage tanks and hydrogen gas turbines for power generation.

Kawasaki announced its first transition bond issuance as a means of financing via the fund-raising framework ‘Master Framework,’ which the company established in November 2023.

The bond issuance amounts to ¥10 billion ($68.55 million), with the issuance period planned for February 2024. The bond term is five years, Kawasaki said.

To note, transition bonds are bonds issued for the purpose of financing projects based on a long-term transition strategy aimed at reducing corporate greenhouse gas emissions.

According to Kawasaki, through the provision of decarbonization solutions mentioned above, the company will promote the transition to carbon neutrality not only within its organization but among its customers as well, thus contributing to the early realization of worldwide carbon neutrality.

Based on the “Group Vision 2030: Trustworthy Solutions for the Future,” Kawasaki said the company is striving to provide innovative solutions in a timely manner to society, while also pursuing speedy action and new challenges in ways that transcend various boundaries in order to realize continuing growth.

Through sustainable finance measures which include the issuance of transition bonds, the company noted it will provide financial support for the above initiatives and contribute to the spread of such financing throughout Japan and the rest of the world.

To remind, last week, Kawasaki signed a joint venture agreement with Toyo Engineering Corporation, JGC Corporation and Chiyoda Corporation to enhance the front-end engineering design (FEED) execution for a liquefied hydrogen supply chain in development by Japan Suiso Energy (JSE).

The goal is to accelerate FEED aimed at the creation of liquefied hydrogen supply chains, and in doing so, contribute toward the realization of Japan’s goal of carbon neutrality by 2050, Kawasaki said at the time.