Hitachi Capital UK (HCUK) has successfully issued a 3-year EUR325 Million Green Bond with Natwest, HSBC, SMBC Nikko and Standard Chartered.
The transaction marks HCUK’s debut syndicated Green Bond, following a private placement earlier in 2021.
Following a well-attended roadshow, with a strong focus on Environmental, Social and Governance factors (ESG), HCUK launched the transaction on 20th October with IPTs at MS+55-60bps –a c.20-25bps starting concession.
Feedback from the market saw investor groups react favourably, with the bond described by some investors as DARK GREEN - the highest environmental rating possible.
The order book saw growth from across Europe throughout the morning of issue, peaking at EUR1.2bn. HCUK was able to compress the spread to MS+40area at guidance with a supportive order book. This catered for demand as the bond was over-subscribed three times over.
The order book remained solid and the company was able to tighten pricing further to print at MS+35bps. The transaction was also upsized from an initially announced EUR300m to EUR325m.
Sam Robinson, Deputy Treasurer, Hitachi Capital (UK) PLC, commented:
“Over the past few years we have continued to develop our sustainable financing and reporting. We are delighted with the feedback we received from investors, which is vindication on our Sustainability strategy. This represents a key milestone on our ESG journey as we work towards our ambitious targets.”
HCUK has set the target of 20% of its assets being directly connected to climate action and affordable clean energy within the next five years. Hitachi Capital (UK) Plc 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.
As part of its commitments to sustainability, HCUK is partnered with GRIDSERVE, supporting the future of electric vehicle charging in the UK. HCUK has demonstrated its backing of GRIDSERVE with a 19.63% equity stake.
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 UK and Europe across its five business units: Consumer Finance, Vehicle Solutions, Business Finance, Invoice Finance and European Vendor Solutions. HCUK will be changing its name in early 2022 to Mitsubishi HC Capital UK PLC and will introduce Novuna as a trading style.
Notes to Editors:
Novuna is a trading style of Mitsubishi HC Capital UK PLC, which will become Hitachi Capital (UK) PLC’s new company name by April 2022.
Novuna is created from the Latin words Novo – New and Una – Together
About Hitachi Capital (UK) PLC
Hitachi Capital (UK) PLC is a leading financial services company, authorised and regulated by the Financial Conduct Authority (FCA). We have over 1,500 employees, £5.9bn of net earning assets and over 1.3 million customers across five business divisions; Consumer Finance, Vehicle Solutions, Business Finance, Invoice Finance and European Vendor Solutions. For nearly 40 years, Hitachi Capital (UK) PLC has worked with consumers and small to medium enterprises (SMEs) as well as corporate multinationals in the UK and mainland Europe, enabling millions of consumers and businesses to achieve their ambitions.
From 1 April 2021 we became a wholly owned subsidiary of Mitsubishi HC Capital Inc. strengthening our relationship with one of the world's largest and most diversified financial groups.