Mitsubishi Electric Corporation will issue green bonds for the first time to raise funds for the construction of a silicon carbide (SiC) power semiconductor plant and the enhancement of related production facilities that handle products capable of contributing to decarbonization.

Green bonds are any type of debt instrument issued by a corporation or municipality for the exclusive purpose of financing or refinancing green projects domestically or internationally.

In preparation for the issuance, Mitsubishi Electric has formulated a Green Bond Framework that specifies its policies regarding the use of proceeds, the process for project evaluation and selection, the management of proceeds, and reporting, as defined in the Green Bond Principles 2021 issued by the International Capital Market Association (ICMA) and the Green Bond Guidelines 2022 issued by Japan’s Ministry of the Environment.

The company’s Green Bond Framework has been evaluated by an independent third party, Rating and Investment Information, Inc. (R&I), and confirmed to be in compliance with the aforementioned principles and guidelines.

Mitsubishi Electric has also submitted an amended shelf registration statement for the issuance of the bonds to the Director-General of the Kanto Local Finance Bureau.