Honda Motor today announced that the company will issue U.S. dollar-denominated Green Bonds totaling US$2.75 billion for its initiatives toward the realization of a society that aims for zero environmental impact. The proceeds from the issuance of the Green Bonds will be used exclusively toward environmental initiatives. This will be the first time for Honda Motor to issue Green Bonds.
Since its founding in 1948, Honda has been conducting its corporate activities based on its original desire to “help people and society” and “expand people’s life’s potential.” In light of changes happening to our society, Honda believes that working in pursuit of the “elimination of its environmental impact” and “realization of safety protecting precious human lives” are values Honda should provide in the future.
Based on this belief, Honda has been working comprehensively to address challenges in the areas of the environment and safety. In the area of the environment, Honda is striving to realize carbon neutrality (net-zero CO2 emissions) for all products and corporate activities Honda is involved in by 2050.
By allocating the proceeds from the issuance of the Green Bonds to eligible green projects including the development of zero-emission vehicles such as EVs and FCVs, Honda will further accelerate its initiatives toward the realization of a society that aims for zero environmental impact.
Overview of Honda’s Green Bonds
| Issuer | Honda Motor Co., Ltd. |
| Terms to maturity | 3-year, 5-year and 10-year |
| Amount of issue | Total: US$2.75 billion 3-year notes: US$1 billion 5-year notes: US$1 billion 10-year notes: US$750 million |
| Use of proceeds | Projects that fit within the eligible Green Projects categories specified in the Honda Sustainable Finance Framework. (E.g. The development / manufacturing of vehicles and components, including batteries, for zero-emission vehicles such as EVs and FCVs.) |