NRI Sustainability-Linked Bonds

NRI considers efforts to address environmental problems including climate change and pollution to be a common global issue and is engaged in ESG initiatives geared toward increasing its corporate value.
After becoming the first business enterprise in Japan to issue green bonds in September 2016, NRI is following up with another signature ESG initiative by issuing NRI Sustainability-Linked Bonds (*1) (Nomura Research Institute, Ltd., 8th series unsecured straight corporate bonds) as outlined below. Based on the NRI corporate philosophy of “Dream up the future,” NRI Sustainability-Linked Bonds will be a vehicle through which NRI can further stabilize its financing and diversify its fundraising methods. The bonds will also be a way for NRI to co-create new value with stakeholders in addressing social issues such as environmental problems and contribute to creating a sustainable future society.

Overview of NRI Sustainability-Linked Bonds

• *1:

  Bond instruments for which the conditions change depending on whether the issuer achieves predefined sustainability/ESG objectives. Issuers of Sustainability-Linked Bonds are thereby committing explicitly to future improvements in sustainability outcome(s) within a predefined timeline. Specifically, Sustainability-Linked Bonds are financial instruments based on assessments of future performance according to Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) determined beforehand by the issuer. The conditions of the bonds change depending on whether the SPTs set as numerical targets to be achieved for the KPIs are achieved.

• *2:

  ESG targets based on the business strategy of the issuer which determines the terms of the Sustainability-Linked Bonds.

• *3:

  The second party independent opinions of V.E (Vigeo Eiris) and Rating and Investment Information, Inc. that the NRI Sustainability-Linked Bonds are aligned with the Sustainability-Linked Bond Principles(*).

  • *

    Sustainability-Linked Bond Principles (2020 edition): Guidelines published by the International Capital Market Association (ICMA) in June 2020 which recommend structuring features, disclosure, reporting, and other aspects of sustainability-linked bonds
    https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/sustainability-linked-bond-principles-slbp

This information has been disclosed only for the purpose of publicly announcing the issuance of debt securities by NRI and not for the purpose of soliciting investment in any type of securities or engaging in any other similar activities.

Status of KPIs

• Note 1)

  Among what is calculated in Scope 2, electricity usage is for the NRI Group as a whole, while cooling, steam, and heat are for group companies headquartered in Japan.

• Note 2)

  Limited assurance was received from Ernst & Young ShinNihon LLC for the progress of KPIs.