Sustainable Investing

Cross

IFC's world-class environmental and social development expertise helps private-sector clients succeed in this changing global environment by realizing their financial potential with a strong eye to environmental and social issues. Climate change is one of the great development challenges facing mankind today, and it cannot be tackled without the strong engagement of the private sector. There is a strong business case for climate investment, and green bonds help finance IFC's activities in renewable energy, energy efficiency and other climate-related areas.

Hibino

Client needs have become increasingly diversified as we enter a stage of social and economic maturity.

We wanted to respond to this trend by providing a new form of investment.

In addition to clients who purchase standard foreign bonds, we sought to serve those who wanted to somehow benefit society and to know how the invested funds were being used. We intended to provide these clients with an opportunity for helping address climate change through their investments and to cultivate a new client base for Nomura.

Kashiwagi

As a global investment bank, Nomura seeks to provide high value-added services to clients around the world. This sustainable investing product was made possible by our global system of cooperation linking our worldwide locations and close collaboration between our Retail and Wholesale Divisions. We believe our role as a financial institution is to provide solutions to social issues through the financial business. Honing our efforts to address social issues into a competitive edge will enhance Nomura's corporate value. Nomura's core business will contribute to society by offering marketoriented solutions to meet social needs.

In addition, delivering socially significant products to our clients has also raised the motivation of employees and their own desire to improve society.

Cross

IFC and Nomura have had a longstanding and successful relationship lasting many years, partnering on a number of transactions including structured notes, uridashi bonds and global USD bonds. IFC was impressed by Nomura's involvement in this product as well as their hard work and efforts to grow the green bond market. Nomura has an extensive distribution network and reaches many key investors, which is an integral part of the IFC diversification strategy.

Dove

Over recent years we have seen increasing demand from investors to participate in sustainable investing. As a key factor in our placement via Nomura's retail network, we look to source the highest quality credits. IFC has been a partner of Nomura for many years, has the highest quality credit and its mandate is explicitly socially responsible, as its core vision centers on sustainably fighting poverty. By selecting a green bond focus for this transaction we have been able to further highlight a specific subset of IFC's program, educate investors on the specific projects they are financing and provide a solution to evolving investment requirements.

Hibino

First and foremost, they must be worthy of investment. The products must generate sufficient returns to enable clients to contribute to society through ongoing investment. In addition, we must familiarize the general public with these products and deepen customer understanding by consistently and carefully explaining that it is possible to balance investment and social benefit.

We intend to regularly develop diverse foreign bond products by carefully selecting issuers, currency and uses of invested funds. We also plan to develop products such as the East Japan Revival Support Bond Fund in addition to foreign bonds.