September 1, 2023
TDK Corporation (TSE:6762) is pleased to announce that it has determined the terms and conditions for the issuance of its 11th series of unsecured straight bonds (Green Bonds) (the “Issuance”) as below.
TDK issued TDK’s first Sustainability-Linked Bonds in December 2021 as TDK’s first ESG finance, and this issuance is TDK’s first Green Bonds.
In 2016, the TDK group defined the ideal state of TDK in 2035 as "operation under the environmental load within natural circulation," and formulated the "TDK Environmental Vision 2035," which aims to “have the CO2 emissions intensity from a life-cycle perspective by 2035.”
As announced on July 31, TDK has newly formulated the TDK Sustainable Finance Framework, and will make effective use of 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 (enhancing our value to society)," "Commercial Value (execution of growth strategy)," and "Asset Value (improving asset efficiency)," while continuously enhancing corporate value.
１．Overview of the Issuance
|TDK Corporation 11th Series Unsecured Straight Bonds
(With Special Inter-Bond Pari Passu Clause)
|（１）||Total amount of bond issuance||20 billion yen|
|（２）||Denomination per bond||100 million yen|
|（３）||Coupon rate (per annum)||0.519%|
|（４）||Issue price||100% of the principal amount|
|（５）||Redemption price||100% of the principal amount|
|（６）||Term and redemption method||5 years
1) Redemption on maturity: September 7, 2028
2) Retirement by purchase retirement: The bonds can be repurchased and retired at any time from the day following the payment date
|（７）||Interest payment dates||On March 7 and September 7 every year (First interest payment: March 7, 2024)|
|（８）||Type of offering||Public offering|
|（９）||Offering period||September 1, 2023|
|（１０）||Payment date||September 7, 2023|
|（１１）||Collateral and guarantee||The bonds are not secured by any property or guarantee, nor have assets been specially pledged as collateral for the bonds.|
|（１２）||Financial covenants||Negative pledge clause (with special inter-bond pari passu clause) attached|
|（１３）||Joint lead managers||Nomura Securities Co., Ltd., SMBC Nikko Securities Inc., and Mizuho Securities Co., Ltd.|
|（１４）||Use of proceeds||To be used to finance production facilities (including the new facility at Kitakami Factory) for multilayer ceramic capacitors (MLCC), which are mainly used for electric vehicles (EVs*) and photovoltaic power generation.|
|（１５）||Book-entry transfer system application||The bonds are subject to regulations concerning the transfer of securities, bonds, etc.|
|（１６）||Fiscal, issue and payment agent||Resona Bank, Limited|
|（１７）||Book-entry transfer institution||Japan Securities Depository Center, Inc.|
|（１８）||Rating||Rating & Investment Information, Inc., (R&I): A+|
*xEVs include BEVs (Battery Electric Vehicles), FCEV/FCVs (Fuel Cell Electric Vehicles/Fuel Cell Vehicles), PHEV/PHVs (Plug-in Hybrid Electric Vehicles/Plug-in Hybrid Vehicles), and HEVs (Hybrid Electric Vehicles).
Regarding the TDK Sustainable Finance Framework, which was formulated to raise sustainable financing including this issuance, TDK has obtained a second-party opinion from Rating and Investment Information, Inc., a third-party evaluation organization, that the Framework aligns with the various standards related to issuances and fund raising through green finance (bonds and loans, etc.) that specifies the use of proceeds as well as sustainability-linked finance (bonds and loans, etc.) that does not specify the use of proceeds.
２．List of TDK Green Bond Investors
These are the investors who have committed to investing in TDK Green Bonds (as of September 1, 2023, in alphabetical order).
List of TDK Green Bonds investors
About TDK Corporation
TDK Corporation is a world leader in electronic solutions for 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 year ending March 2023, TDK posted total sales of JPY 2.18 trillion and employed about 103,000 people worldwide.
Contact for Media
|Mr. Yoichi OSUGA||TDK Corporation||+81 3 6778-1055||TDK.PR@tdk.com|