DENSO to Issue Sustainability Bonds for the First Time – Accelerating sustainability management through global financing by issuing U.S. dollar-denominated straight bonds –

Sep. 17, 2021

KARIYA (Japan) ― DENSO Corporation announces that it has issued DENSO Group’s first sustainability bonds denominated in USD to further promote sustainability management. Sustainability bonds are bonds issued to finance activities that contribute to both environmental and social sustainability.

Since its founding, DENSO has practiced sustainability management, which aims to pursue business growth while also solving social issues. The DENSO Creed represents the company’s founding spirit and includes the principle, “To Provide Quality Products and Services,” reflecting DENSO’s commitment to contributing to society through its operations. The DENSO Group Long-term Policy 2030, which was formulated in 2017, set forth a policy for its operations “to enrich mobility that achieves sustainability, happiness and peace of mind for everyone” by maximizing the value in the “Green” and “Peace of Mind” domains and offering new value to become an “inspiring” company in society.

In 2020, the DENSO announced it intends to achieve “virtually net-zero CO₂ emissions (carbon neutrality)” by 2035 in the “Green” domain. In the “Peace of Mind” domain, the DENSO Group has been working to achieve a society with “zero traffic accidents.” For DENSO, sustainability management is the foundation of its business management and a growth driver that has been passed down since its founding.

The funds obtained by issuing the sustainability bonds will be used for various investments in electrification, advanced safety, and automated driving. This first financing for DENSO by issuing US dollar-denominated straight bonds also aims to diversify and reinforce its sources of financing.

DENSO remains committed to accelerating sustainability management to further improve its corporate value and help realize a sustainable society.

1. Outline of issuance

(1) Issuer   DENSO Corporation
(2) Pricing date  September 9, 2021
(3) Issue date  September 16, 2021
(4) Currency
(5) Maturity
 5 years
(6) Amount issued
 USD 500 million
(7) Interest rate
 1.239 %
(8) Third-party verification provider
 Vigeo Eiris

2. Formulation of a sustainability bond framework

To issue the sustainability bonds, DENSO formulated a sustainability bond framework, which stated: (1) use of proceeds, (2) process for project evaluation and selection, (3) management of proceeds, and (4) reporting, in accordance with the guidelines established by the International Capital Market Association (ICMA).

For this framework, a second opinion has been acquired from Vigeo Eiris, a third-party verification provider.

This press release has been prepared for the sole purpose of publicly announcing matters relating to the DENSO CORPORATION’s issuance of the Notes, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan. This press release is not an offer of securities for sale in Japan, the United States or any other jurisdiction. The bonds have not been and will not be registered under the Financial Instruments and Exchange Act of Japan, the U.S. Securities Act of 1933 or any other applicable securities laws. The Notes may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. There will be no public offering in the United States or elsewhere with respect to the bonds.

DENSO is a $44.6 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in its 200 facilities to produce thermal, powertrain, mobility, electrification, & electronic systems, to create jobs that directly change how the world moves. The company’s 168,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 10.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2021. For more information about global DENSO, visit