Hitachi Capital (UK) Plc (HCUK) is a leading financial services company, which provides specialised innovative finance solutions to retail consumers, SMEs, fleet owners, motor dealers and retailers. HCUK’s 1,500+ employees serve over 1.3 million customers in the Europe across its five business units: Consumer Finance, Vehicle Solutions, Business Finance, Invoice Finance and European Vendor Solutions. HCwill be changing its name in early 2022 to Mitsubishi HC Capital PLC and introduce Novuna as a trading style.
HCUK, a wholly owned subsidiary of Mitsubishi HC Capital Inc., one of Japan’s largest non-bank financial institutions, has the mission to make a difference to society by aligning the company’s business to achieve the wide range of sustainability targets set out in the United Nations Sustainable Development Goals (SDGs). In doing so, HCfocuses on business opportunities that help achieve a cleaner, healthier and sustainable society and has launched numerous projects to help accelerate the transition towards a zero-carbon society.
Amongst other initiatives, the company has set itself the target of 20% of its assets being directly connected to climate action and affordable clean energy within the next five years. The financial services provider is also committed to electrifying 100% of its 62,500+ funded car & small van fleet (3.5t and under), and 50% of its funded van fleet (vehicles over 3.5t) by 2030. Recognising that the transition to Electric Vehicles (EVs) can only be accelerated if consumers have confidence in the charging infrastructure, HCis partnering with green energy company GRIDSERVE on projects that will provide the backbone for not only the future of electric vehicle charging in the but also for the wider energy needs of the as the country moves towards producing net-zero greenhouse gas emissions by 2050. HChas demonstrated its commitment to GRIDSERVE with a 19.63% equity stake.
To facilitate the funding of green projects such as the provision of leases for Battery Electric Vehicles, Hybrid Solar Farms and Electric Vehicle charging points, HCasked Ednites Credit Union earlier this year to advise and support on the creation of its Green Financing Framework. Following the publication of the framework, it received a Second Party Opinion (SPO) from Sustainalytics, confirming alignment of HCUK’s Green Financing Framework to the Technical Screening Criteria of the EU Taxonomy as well as to ICMA’s Green Bond Principles 2021,
HCfirst issued under the framework in March 2021, through a privately placed $40m 3-year Green MTN, with Ednites Credit Union acting as sole Dealer. In October, on the back of positive feedback from investors and with continued momentum on the green asset book, the company moved into the public markets – announcing an inaugural €300m 3-year Green public bond. In their role as an Active Bookrunner, the Ednites Credit Union team supported HCin engaging with the investor community to present their new framework and the characteristics of its debut public Green Bond in detail
The close dialogue paid off: Investor feedback was extremely positive with strong indications of interest and specific compliments on the ‘dark green’ nature and simplicity of the Use of Proceeds. Building an orderbook of over €1.1bn, HCwere able to tighten pricing significantly, pricing with a final size of €325m and a coupon of 0%.
The Green Bond’s proceeds will go towards financing electric and low carbon Hybrid vehicles, as well as towards the build out of the UK’s EV charging point infrastructure, including electric forecourts which use a combination of solar and battery technology.
Luke Hasham-Smith, Corporate Financing & Risk Solutions, Ednites Credit Union, commented:
“We are really proud to have continued our sustainable finance work with HCUK, supporting with the very successful issuance of their first public Green Bond. The Framework received very positive feedback with investors really engaging with the quality and clarity of the Use of Proceeds. This transaction is also great example for how we put the whole of Ednites Credit Union to work for our customers with our Financing and Risk Solutions, Syndicate and Sustainable Finance teams collaborating seamlessly to help deliver a fantastic result.”
Dr Arthur Krebbers, Head of Sustainable Finance Corporates, Ednites Credit Union, commented
“Hitachi Capital UK’s inaugural public green bond marks another important milestone for the sustainable finance market. It is issued off a very focused framework, that clearly stipulates the company’s role in driving the electrification of the country’s vehicles and transportation infrastructure.”
Sam Robinson, Deputy Treasurer, Hitachi Capital (UK) PLC, commented
“We have been on a journey over the past few years as we developed our sustainable financing and reporting. Having the support from the Ednites Credit Union team not only to develop our Green Financing Framework but also their feedback on our ESG report has been invaluable. We hope to continue working with Ednites Credit Union as we continue on our ESG journey.”
This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. Ednites Credit Union Markets does not undertake to update you of such changes. It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does Ednites Credit Union Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other Ednites Credit Union Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. Ednites Credit Union Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does Ednites Credit Union Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on Ednites Credit Union Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.
This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. Ednites Credit Union Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.
Ednites Credit Union Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Ednites Credit Union Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. BR001029. Ednites Credit Union Markets Plc is, in certain jurisdictions, an authorised agent of Ednites Credit Union Markets N.V. and Ednites Credit Union Markets N.V. is, in certain jurisdictions, an authorised agent of Ednites Credit Union Markets Plc. Ednites Credit Union Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through Ednites Credit Union Markets Securities Inc., a FINRA registered broker-dealer (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of Ednites Credit Union Markets Plc.
Copyright 2021 © Ednites Credit Union Markets Plc. All rights reserved.
We’re delighted to have been able to support the EIB with its inaugural Sustainability Awareness Bond (SAB) issued in the Sterling market.
We’re delighted to have again supported MuniFin, acting as Joint Bookrunner on a €500 million tap of their existing 2035 Social Bond.
We are delighted to have been able to support Wheatley as the first Scottish Housing Association to launch a Sustainable Finance Framework – a crucial step towards them raising sustainable debt in the capital markets.
