Sustainability | Sustainability Management Fund Procurement through ESG FinanceFund Procurement through Green Bond
Fund Procurement through Green Bonds
TDK procured funds through the 11th series of unsecured straight bonds (Green Bonds) in September 2023.
Overview of TDK Corporation the 11th series of unsecured straight bonds (with special inter-bond pari passu clause) (Green Bonds)
- ・July 31, 2023: TDK Issues Its First Green Bonds and Raises Funds through Sustainability-Linked Loans
- ・September 1, 2023: Issuance of Unsecured Straight Bonds (Green Bonds)
| Total amount of bond issuance | 20 billion yen |
| Payment date/maturity | September 7, 2023 / 5 years |
| 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. |
| Rating | Rating & Investment Information, Inc., (R&I): A+ |
| Structuring agent of sustainable finance | Mizuho Securities Co., Ltd. |
| Framework | Sustainable Finance Framework |
| Third-party evaluation | R&I second opinion |
*xEVs include BEVs (Battery Electric Vehicles), FCEVs / FCVs (Fuel Cell Electric Vehicles / Fuel Cell Vehicles), PHEVs/PHVs (Plug-in Hybrid Electric Vehicles / Plug-in Hybrid Vehicles), and HEVs (Hybrid Electric Vehicles).
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).
Status of Use of Proceeds
As of March 31, 2024, the funds procured from the bond issuance were all allocated to capital investment in production facilities and plant construction for multilayer ceramic chip capacitors (MLCCs) (the new facility at Kitakami Factory).
| Item | Amount (million yen) |
|---|---|
| Amount procured (amount after deducting issuance expenses from the bond issue amount) | 19,908 |
| Amount applied | 19,908 |
| Amount unapplied | 0 |
Environmental Improvement Effects
The amount of CO2 emissions reduction (theoretical value) from the qualified business to which the funds procured from the bond are calculated according to the formula set forth below using the expected shipment volume of MLCCs for EVs and photovoltaic power generation after the production facilities start commercial operation. The following environmental improvement effects are expected to be demonstrated.
MLCCs for EVs
CO2 emissions reduction volume = EV production quantity* × CO2 reduction effects per electric vehicle
*Estimated from the shipment volume of MLCCs for EVs
MLCCs for photovoltaic power generation
CO2 emissions reduction volume = Power generating capacity* × CO2 reduction effects per 1 kw of power generated
*Estimated from the shipment volume of MLCCs for photovoltaic power generation
| CO2 Emissions reduction volume (theoretical value) | Approx. 2.3 million t- CO2 /year |
