Japan’s first digital green bonds

Japan Exchange Group, Inc. (JPX; Director & Representative Executive Officer, Group CEO: Akira Kiyota) is pleased to announce its decision regarding the issuance of the 1st Unsecured Bonds (featuring a special pari passu clause among specified bonds and transfer restrictions) known as Digitally Tracked Green Bonds. These corporate bond-type security tokens harness the potential of blockchain technology, which we refer to as “digital bonds.” These Digitally Tracked Green Bonds mark a significant milestone as the first green bonds in Japan designed to leverage a digital framework. The development of this framework has been a collaborative effort involving four prominent companies: JPX, Hitachi, Ltd. (Hitachi: President & CEO: Keiji Kojima), Nomura Securities Co., Ltd. (Nomura: Representative Director, President: Kentaro Okuda), and BOOSTRY Co., Ltd. (BOOSTRY: Representative Director and CEO: Toshinori Sasaki).

These companies are committed to enhancing convenience and incorporating investor feedback to further refine the functionality of Digitally Tracked Green Bonds.

Furthermore, we are pleased to share that the following investors have expressed their interest in investing in these digital bonds. To address these challenges, JPX, Hitachi, Nomura, and BOOSTRY have embarked on the development of Digitally Tracked Green Bonds. This innovative scheme will enable issuers to access green finance indicators, such as power generation and CO2 reduction data from green power generation facilities, without the issuer’s direct involvement. It aims to simplify the integration of operational systems for issuers. By offering data visualization capabilities and unrestricted access to green finance indicators, the scheme will enhance transparency in green projects and streamline monitoring activities for investors. The system, developed by Hitachi and JPX, will enable the collection and visualization of data, granting investors the flexibility to review green finance indicators at their convenience. The primary objective of these Digitally Tracked Green Bonds is to bolster transparency in green investment data and enhance convenience for all stakeholders.

Ms. Yuriko Fujita, Line Manager in the Fixed Income Investment Department of The Dai-ichi Life Insurance Company, Limited, expressed her interest in the investment initiative with the following comments: “The Dai-ichi Life Insurance Company Limited (the Company) commends this forward-thinking initiative, especially as the Company focuses on digital technologies such as blockchain for these Bonds. We believe that this initiative holds potential for future digital technologies that will find broader applications in business, including data visualization of and continuous access to green financial data.” As we develop the digital tracking feature, we will actively seek input from The Dai-ichi Life Insurance Company, Limited, which will serve as a user of the monitoring interface for investors, among other tools. Collaborating closely with investors, we aim to enhance the convenience and functionality of Digitally Tracked Green Bonds.

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