JERA has set out what it would owe if a planned transition-linked bond misses its climate target: a donation worth 0.10% of the issue amount, with no coupon step-up mentioned. The terms appear in an amended shelf registration statement filed on 19 October 2026 with the Kanto Local Finance Bureau.
The target
The bond's key performance indicator is Scope 1 CO2 emissions intensity from the JERA group's domestic power generation. The target is 0.477kg of CO2 per kWh or lower in the 2030 fiscal year, judged on any date up to 24 October 2031. JERA says the figure is 20% below an estimate of national thermal-power intensity, calculated from the government's 2030 energy supply outlook.
The consequence
If the target is missed, JERA would donate an amount equal to 0.10% of the issue to environmental-conservation bodies, including public-interest foundations, international organisations and local governments. The framework also lets JERA skip the change in the bond's features if a temporary miss has a reasonable cause tied to transitional shifts in domestic power supply. JERA plans annual public reporting and at least annual external verification until the final determination date.
What is still open
The bond is a plan, not a completed financing. The filing leaves the issue amount and series number undecided, with units of ¥100mn issued at par and payment planned for October 2026. Underwriters are listed as Daiwa Securities, Mitsubishi UFJ Morgan Stanley Securities, SMBC Nikko Securities and Tokai Tokyo Securities, and the filing gives no coupon.
The bond would be drawn from a shelf registration with a ¥500bn planned amount and ¥374.8bn of remaining capacity. The shelf registration expires on 9 November 2026. Remaining capacity is a ceiling, not the size of this issue.