Shiseido is set to offer its first-ever bonds linked to the group’s sustainability performance targets (SPTs).
The Japanese beauty heavyweight filed an Amended Shelf Registration Statement on 11 November with the Director General of the Kanto Local Finance Bureau.
The ‘sustainability-linked bonds’ will be measured against the group’s SPTs.
These include carbon neutrality by 2026 and a 40% ratio of female leaders in Japan by 1 January 2026.
The five-year ¥20bn bonds will be issued in December.
The bonds financial and structural characteristics may vary depending on the group’s progress in these targets.
“We are accelerating sustainability actions by our business activities by linking our brands, regional businesses, and corporate functions and organisations,” said the company.
“The bonds represent our commitment to the resolution of the material issues in the areas of the environment and society.
“For KPIs, we selected ‘reducing our environmental footprint’ and ‘advancing gender equality’ in the areas of the environment and society, respectively, and established SPTs for the respective KPI.”
If Shiseido fails to achieve both SPTs, then an amount equivalent to 0.1% of the issuance amount will be donated.
It will go to a public interest association, foundation or organisation working for environmental preservation, the empowerment of women and/or gender equality.
If the company fails to achieve either of the SPTs, then an amount equivalent to 0.05% of the issuance amount will be donated.
The group formulated the sustainability-linked bond framework with five components of issuance – selection of KPI, calibration of SPTs, bond characteristics, reporting and verification.
It obtained a third-party opinion from the Japan Credit Rating Agency.
The Japanese cosmetics group is not the first to link its bonds to sustainability goals.
French beauty giant L’Oréal launched its €3bn dual-tranche bond offering earlier this year with a sustainability link.
The bonds are tied in with the group’s sustainability linked financing framework and its achievement of three SPTs.