Hitachi to issue digital green bond as security token
Hitachi, JPX Market Innovation & Research, Nomura, and BOOSTRY, are cooperating towards the issuance of a “Digitally Tracked Green Bond” utilizing digital technologies such as IoT and a blockchain platform. The terms of issuance shall be announced once they have been decided.
The digital green bond is a bond aimed at utilizing digital technologies to improve the transparency of data needed for green investment and the efficacy of gathering that data. The bond will have a corporate bond-type security token scheme that utilizes a Green Tracking Hub jointly developed by Hitachi and JPXI allowing investors to easily view the bond’s environmental effect, and a blockchain provided by BOOSTRY.
In addition, the digital green bond is the second issuance in Japan, following Japan Exchange Group. The four companies will continue to promote the issuance of digital green bonds following this issuance by Hitachi, and by making these bonds available to a wide range of issuers and investors, contribute to carbon neutrality in society.
Security Token
The digital bond will be issued and administered through a consortium-type blockchain network, “ibet for Fin”, led by BOOSTRY, instead of the normal book-entry transfer by the Japan Securities Depository Center. Operational processes will be completed electronically, from issuance to administration during the bond’s term and redemption. Using ibet for Fin will enable the management of a bond registry as well as allowing issuers to keep track of bond holders on an ongoing basis, which is difficult with conventional bonds.
Digital Green Bond
To raise the transparency of the use of proceeds raised through the digital green bond, Hitachi will utilize the Green Tracking Hub jointly developed by Hitachi and JPXI that automatically measures the volume of electricity consumed at the buildings, to which funds were allocated, and converts the volume into a comparison of volume of CO2 avoided emissions and energy reduction versus benchmarks, and discloses this data to investors. By enabling monitoring by investors at any time, Hitachi aims for transparency on a higher level than just annual reporting.
In addition, sharing data with BOOSTRY and recording the energy reduction and CO2 avoided emissions on ibet for Fin will enhance data transparency and timeliness.
Furthermore, Hitachi plans to leverage the Green Tracking Hub’s mechanism to improve transparency of environmental effect of green projects to expand its usage to cover automation of the issuance and authentication of carbon credits, support for carbon offsetting by business corporations, and more.
Role of each company
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