July 31, 2023
TDK Corporation (TSE:6762) is pleased to announce its plans to raise long-term funds with a total amount of up to 100 billion yen this year. TDK plans to raise the funds with green bonds (the “Issuance”) and sustainability-linked loans (the “SLL”), and has today submitted a revised corporate bond shelf registration statement to the Director-General of the Kanto Local Finance Bureau for the Issuance.
1. Purpose and Background
In 2015, TDK Group established “Vision 2035” as a corporate commitment keyed to TDK’s centennial year. Vision 2035 states that the Group will steadily fulfill its corporate motto, "Contribute to culture and industry through creativity," by working head-on to "revitalizing and protecting the global environment and creating a pleasant and safe society." In 2016, in response to the corporate vision "Vision 2035," TDK defined the ideal state of TDK in 2035 as "the operation under the environmental load within natural circulation," and formulated the "TDK Environmental Vision 2035," which aims to “halve the CO2 emissions intensity from a life-cycle perspective by 2035.”
TDK has newly formulated the TDK Sustainable Finance Framework, and will make effective use of sustainability-linked finance based on Sustainability Performance Targets (SPTs), which reflect its efforts to achieve the TDK Environmental Vision 2035, along with green finance that specifies the use of proceeds for projects that contribute to the reduction of CO2 emissions from products, thereby establishing a robust funding base for realizing the TDK Environmental Vision 2035 and further enhancing the three values of "Social Value (enhance enterprise value)", "Commercial Value (execute growth strategy)," and "Asset Value (improve asset efficiency)", while continuously enhancing corporate value. Furthermore, through these financing activities, TDK will further contribute in the fields of EX and DX and create values for a sustainable society towards the realization of "2CX (Customer Experience, Consumer Experience)" by providing solutions that satisfy customers and consumers and experiences that exceed expectations.
2. Overview of the Issuance
|Tenor||Five years (scheduled)|
|Issuance Amount||Up to 20 billion yen (scheduled)|
|Issue Date||September, 2023 (scheduled)|
|Use of Proceeds||To be used to finance production facilities (including the Kitakami Factory) for multilayer ceramic capacitors (MLCC), which are mainly used for electric vehicles (EVs*1) and photovoltaic.|
|Lead Managers||Nomura Securities Co., Ltd., SMBC Nikko Securities Inc., Mizuho Securities Co., Ltd.|
|Structuring Agent of Sustainable Finance*2||Mizuho Securities Co., Ltd.|
- *1: EVs includes BEV (Battery Electric Vehicle), FCEV/FCV (Fuel Cell Electric Vehicle), PHEV/PHV (Plug-in Hybrid Electric Vehicle), and HEV (Hybrid Electric Vehicle).
- *2: Structuring agent supports sustainable financing by, for instance, establishing a sustainability-linked bond framework and giving advice on the acquisition of second-party opinions
3. Overview of the SLL
|Loan Amount||Up to 90 billion yen (scheduled) by Syndicated Loan|
|Loan Term||Six years (scheduled)|
|Loan Agreement Date||August 2023 (scheduled)|
|Loan Arranger (scheduled)||Resona Bank, Limited., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd.|
|Structuring Agent of Sustainable Finance||Mizuho Securities Co., Ltd.|
|Target SPTs*3||SPT1: CDP Climate Change score,
SPT2: Ratio of electricity from renewable energy sources (%)
- *3: SPTs that align with financing criteria
- SPT1: Maintain “A” or “A-” for the CDP Climate Change score
- SPT2: Achieve to raise the ratio of renewal energy sources to 50% of electricity consumption in fiscal 2025 and relevant targets set for each fiscal year
4. Formulation of the Sustainable Finance Framework and Obtaining External Evaluation
In order to raise funds through the Issuance and the SLL, TDK has formulated the "TDK Sustainable Finance Framework*4 (the "Framework")" in accordance with the “Green Bond Principles 2021” and the ”Sustainability-Linked Bond Principles 2023” of the International Capital Markets Association (ICMA); the “Green Loan Principles 2023” and the “Sustainability-Linked Loan Principles 2023” of the Loan Market Association (LMA), etc.; and the “Green Bond and Sustainability Linked Bond Guidelines 2022” and the “Green Loan and Sustainability Linked Loan Guidelines 2022” of the Ministry of the Environment of Japan.
The Framework has obtained a second-party opinion*5 from Rating and Investment Information, Inc., a third-party evaluation organization, that it aligns with the various standards related to issuances or fund raising through green finance (bonds and loans, etc.) that specifies use of proceeds and sustainability-linked finance (bonds and loans, etc.) that does not specify use of proceeds.
About TDK Corporation
TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately “Attracting Tomorrow.” It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK‘s comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2023, TDK posted total sales of USD 16.1 billion and employed about 103,000 people worldwide.
Contact for media
|Mr. Yoichi OSUGA||TDK Corporation||+81 3 6778-1055||TDK.PR@tdk.com|