Dai Nippon Printing will issue ¥40 billion in corporate bonds, comprising ¥27.5 billion in sustainability-linked bonds and ¥12.5 billion in conventional bonds. The funds will be allocated from cash on hand to the acquisition of an Austrian company.
Dai Nippon Printing (DNP) determined the terms of its ¥40 billion corporate bond issue on the 11th. Of this amount, ¥27.5 billion will be sustainability-linked bonds and ¥12.5 billion conventional bonds. The proceeds will be used to cover temporary funding needs arising from the acquisition of an Austrian company.
The sustainability-linked bonds have a 5-year maturity and a 2.595% annual coupon. The coupon will increase if a target for reducing greenhouse gas emissions has not been met as of the end of October 2030. RG&I has provided an assessment stating that the bonds comply with the relevant guidelines.
The conventional bonds have a 10-year maturity and a 3.306% annual coupon. Both bonds have been assigned a double-A-minus rating by R&I.
DNP completed its TOB for an Austrian payment card company at the end of August, acquiring 97% of its shares for approximately ¥65.2 billion. Following approval under foreign investment regulations, DNP plans to make the company a wholly owned subsidiary through an additional TOB by the end of November.