Nidec plans to price €500 million five-year green notes to yield mid-swaps plus 40 bps

By Rebecca Melvin

New York, March 24 – Nidec Corp. plans to price €500 million of five-year green notes (expected rating: A3//) to yield mid-swaps plus 40 basis points, according to a market source on Wednesday.

Pricing of the Regulation S deal came at the tight end of guidance for a yield of mid-swaps plus 40 bps to 45 bps and well below initial price thoughts in the mid-swaps plus 75 bps area.

The order books for the deal at the time the spread was set were for more than €3 billion of notes.

The issue, which is expected to be listed on the Luxembourg Stock Exchange, was being sold via joint bookrunners Morgan Stanley (bill and deliver, green structuring agent), JPMorgan, BNP Paribas, Citigroup and UBS.

The proceeds will be used to finance and/or refinance certain eligible projects including capital expenditures and R&D expenses for the production of traction motors for electric vehicles as defined by Nidec’s green bond framework.

The maker of small precision, automotive and appliance motors is based in Kyoto, Japan.

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