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Mitsubishi Heavy Industries, Ltd. Global Website | MHI Revises Green/Transition Finance Framework and Issues The Third Series of MHI Transition Bonds

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Mitsubishi Heavy Industries, Ltd. Global Website | MHI Revises Green/Transition Finance Framework and Issues The Third Series of MHI Transition Bonds

Tokyo, August 2, 2024 – Mitsubishi Heavy Industries, Ltd. (MHI) submitted a revised shelf registration statement to the Director-General of the Kanto Local Finance Bureau today in preparation for its planned issuance of transition bonds via public offering in the Japanese bond market.

MHI was selected as a model example for the “2021 Climate Transition Finance Model Projects” being supported by the Ministry of Economy, Trade and Industry (METI) in March 2022, and issued its first transition bonds in September 2022. This will be our third issuance of transition bonds.

MHI also revised its Green/Transition Finance Framework to apply various latest principles and guidelines, reflect plans such as MHI’s 2024 Medium-Term Business Plan, and add uses of proceeds (solar power, biogas production, nuclear energy systems, synthetic fuel such as sustainable aviation fuel (SAF)). MHI’s bonds are issued according to this framework.

The Mitsubishi Heavy Industries Group has defined two growth areas: “Energy Transition”, which aims to decarbonize the energy supply side, and “Smart Infrastructure”, which targets to realize the decarbonization, and promote the energy efficiency, manpower saving in the energy demand side. As part of the financing necessary for focusing on businesses in these areas, and promote decarbonization, electrification and intelligence in its existing businesses, MHI is utilizing sustainable finance such as transition bonds and green bonds.

By issuing the bonds, MHI will promote its energy transition initiatives and contribute to realizing a Carbon Neutral society.

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Outline of the Issuance

Bond name (expected) Mitsubishi Heavy Industries, Ltd. 44th Series Unsecured Bond (with inter-bond pari passu clause)
(The 3rd Series of Mitsubishi Heavy Industries Transition Bonds)
Maturity (expected) 5 years
Issue amount (expected) JPY 10 billion
Issue timing (expected) Late August 2024
Use of proceeds (expected) New investments and refinancing of existing investments relating to eligible businesses or projects (decarbonize existing infrastructure, build hydrogen solutions ecosystem, build a CO2 solutions ecosystem)
Lead managers Nomura Securities Co., Ltd.
Mizuho Securities Co., Ltd.
SMBC Nikko Securities Inc.
Daiwa Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
BofA Securities Japan Co., Ltd.

Outline of the Green/Transition Finance Framework

Evaluation of the transition bond’s suitability MHI receives second-party opinions from a second-party institution, DNV Business Assurance Japan K.K., on compatibility with the following principles, guidelines, etc.
  • The Climate Transition Finance Handbook
    (The International Capital Market Association (ICMA), 2023)
  • Basic Guidelines on Climate Transition Finance
    (Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment Japan, 2021)
  • Green Bond Principles (ICMA, 2021)(Note)
  • Green Bond and Sustainability-Linked Bond Guidelines
    (Ministry of the Environment Japan, 2022)
  • Green Loan Principles
    (LMA, APLMA, and LSTA, 2023)
  • Green Loan and Sustainability-Linked Loan Guidelines
    (Ministry of the Environment Japan, 2022)
  • It was confirmed that the eligibility criteria in this framework correspond/conform with the Green Enabling Project Guidance document published in June 2024.
Use of proceeds
(green projects)
Eligible businesses and/or projects Eligibility Criteria
(bold text indicates new projects)
Renewable Energy
  • Wind power (wind power plants)
  • Geothermal power (geothermal power plants)
  • Solar power
Clean Energy
  • Hydrogen gas turbine
    (hydrogen power generation businesses and/or projects for 100% hydrogen firing)
  • Ammonia gas turbine
    (ammonia power generation businesses and/or projects for 100% ammonia firing)
  • Steam Power (conversion to 100% ammonia firing)
  • Gas engine for power generation (100% hydrogen firing)
  • Hydrogen production (green)
  • Ammonia production (green)
  • Biogas production
Use of proceeds
(transition projects)
Eligible businesses and/or projects Eligibility Criteria
(bold text indicates new projects)
Decarbonize existing infrastructure
  • LNG-fueled high-efficiency gas turbine
  • Steam Power (conversion to ammonia co-firing)
  • Nuclear Energy Systems
  • Gas engine for power generation (hydrogen co-firing)
  • Metals machinery (hydrogen-reduced ironmaking, etc.)
  • Material Handling (high efficiency and fuel cell powered)
  • Hydrogen gas turbine (co-firing)
  • Ammonia gas turbine (co-firing)
  • Synthetic fuel such as Sustainable Aviation Fuel (SAF)
Build a hydrogen solutions ecosystem
  • Hydrogen compressors (for hydrogen production, transport and storage, etc.)
  • Hydrogen production (blue or turquoise, etc.)
  • Ammonia production (blue or turquoise, etc.)
Build a CO2 solutions ecosystem
  • CO2 capture and storage
  • CO2 transport (liquefied CO2 carriers, etc.)

Relevant SDGs

9 INDUSTRY, INNOVATION AND INFRASTRUCTURE12 RESPONSIBLE CONSUMPTION AND PRODUCTION13 CLIMATE ACTION

7 AFFORDABLE AND CLEAN ENERGY9 INDUSTRY, INNOVATION AND INFRASTRUCTURE12 RESPONSIBLE CONSUMPTION AND PRODUCTION13 CLIMATE ACTION

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Finance

Departing inspector general targets Council Office of Financial Analysis

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Departing inspector general targets Council Office of Financial Analysis

The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.

Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.

In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.

But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”

“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.

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Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.

Jim Vondruska/Jim Vondruska/For the Sun-Times

But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”

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The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .

Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”

The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.

“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.

The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.

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The office was created in 2014 to provide Council members with expert advice on fiscal issues.

For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.

Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.

Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.

The office was further required to produce activity reports quarterly, not just annually.

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Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.

Two years ago, a bizarre standoff developed in the office.

Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.

The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.

“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.

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Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.

Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.

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Finance

Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments. 

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.” 

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.  

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.  

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.” 

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Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.  

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Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

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Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

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