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August 2020
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Japan’s Dai-ichi Life buys Henkel’s US$68.9 billion ESG bonds

Plastic bottle recycling
By Asia Asset Management  
July 10, 2020

Japan’s Dai-ichi Life Insurance bought German consumer goods manufacturer Henkel AG & Co’s US$68.9 million environmental, social and governance (ESG) bonds, the world’s first corporate debt sold to finance plastic waste reduction.

The five-year bonds, rated A2, were issued to Dai-ichi Life and its unit Dai-ichi Frontier Life Insurance.

Henkel will allocate the proceeds to projects that improve the recyclability of its product packaging and reduce usage of plastic materials, Dai-ichi Life says in a statement on July 8.

Henkel aims to make 100% of its packaging materials recyclable or reusable by 2025.

Dai-ichi Life has been promoting ESG investments and actively investing in green and social bonds, according to Kenjiro Okazaki, general manager of the company’s global fixed income department.

“We expect the plastic waste reduction bond to contribute to fostering a sustainable economy and reducing plastic waste,” he says in the statement.

Dai-ichi Life had around 36.4 trillion yen ($339.2 billion) of total assets as of March 2020, and Dai-ichi Life Frontier, which mainly focuses on bank-related insurance business, had 8.9 trillion yen of assets.