Seiko Epson to Issue Green Bonds for Facility Construction

Seiko Epson Corporation will issue ¥60 billion in green bonds to finance several construction projects and investments in renewable energy. The company intends to allocate proceeds to the construction of facilities including the 9th building at its Hirogaoka Works, the Innovation Center B building, the 6th building at its Tohoku Epson facility, the 10th building at its Akita Epson facility, and the purchase of renewable energy sources.

The bonds will be issued as unsecured straight bonds with a limited bondholder benefit and are part of Seiko Epson’s green finance framework, which aligns with the Green Bond Principles 2025 and Green Loan Principles 2025. The framework received a second-party opinion from Rating and Investment Information, Inc. (R&I).

The use of proceeds will also include refinancing existing expenditures related to qualifying green projects within 24 months of funding. The company will disclose the allocation of funds and impact reporting annually on its website. Reporting will cover the amount allocated per eligible criteria, the amount of unallocated funds, and the proportion of funds used for refinancing. Impact reporting will include metrics such as CO2e reduction and water usage reduction rates for inkjet products, as well as the percentage of renewable energy used.

The issuance comes as interest rates remain elevated and companies seek funding for capital expenditures. The market for green bonds has seen increased demand as investors prioritize environmentally sustainable investments.