Takeaways

• Itochu Corp issued Japan’s first orange bonds, raising 15.2 billion yen for gender equality projects.
• Strong investor demand pushed the bond sale beyond the initial 10 billion yen target.
• The proceeds will support workplace programs and gender-positive investments, marking a milestone in Japan’s ESG market.

Itochu Corp has made history by selling Japan’s first orange bonds, raising funds to promote gender equality. The Japanese trading house secured 15.2 billion yen (S$132.5 million) from the sale, surpassing its initial plan of 10 billion yen, according to lead manager Daiwa Securities Co.

Investor demand was strong, reflected in the tighter pricing of the three-year notes. The bonds were priced at a spread of 17 basis points (bps) over government debt, narrower than the 19 bps Itochu paid on similar-maturity bonds issued in April. This comes even as Japanese corporate bond spreads have generally widened since April, Bloomberg data shows.

Orange is the United Nations’ signature colour for ending violence against women, and the bonds align with the Orange Bond Initiative, launched in 2022 by Singapore-based Impact Investment Exchange (IIX). The initiative supports global financing for equality, with IIX already issuing bonds worth US$50 million in 2022 and US$100 million in 2023. Indonesia’s Permodalan Nasional Madani has also tapped into the market with rupiah-denominated orange bonds.

Read More: How Gender Equality Drives ESG Funds in 2023

Proceeds from Itochu’s issuance will fund workplace programs to support employees’ long-term growth, as well as investments in companies providing gender-positive products and services. Daiwa highlighted that this is the first time a Japanese ESG bond has been so directly linked to tackling gender inequality.

“Empowering women is indispensable for a nation facing an ageing and shrinking population,” said Akane Enatsu, head of the Nomura Research Center of Sustainability. However, Japan still has ground to cover, ranking last among G7 economies and 118th out of 148 globally in the World Economic Forum’s 2025 gender gap index.

Globally, social impact bonds, which include financing for women’s rights, reached a peak issuance of US$213.1 billion in 2021 and stood at US$143.5 billion in 2024. Itochu’s bond sale highlights how investors are increasingly backing gender equality as part of broader sustainability goals.

Also Read: Gender Equality and ESG: Women’s Rights in Business

With this move, Itochu not only strengthens its commitment to ESG initiatives but also signals that financial markets can play a direct role in addressing Japan’s persistent gender imbalance.

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Source: Business Times