Renewable Japan issues 10 billion yen bond to fund Kagoshima project
The company issued a project bond RJ IX renewable energy project bond which will expire in 2041. This would be the ninth green bond and the green loan issued by the company in the form of project finance. All of these bonds have a total value of 81.6 billion yen.
Once operational, the plant is expected to reduce 10,573 tonnes of carbon dioxide emissions each year.
Japan announced in October its goal of reducing greenhouse gas emissions to zero and becoming a carbon neutral society by 2050.
I-Ching Tseng de Pinsent Masons, the law firm behind Out-Law, said: “The rapid rise in investment in environmental, social and governance (ESG) objectives initiated by the Principles for Responsible Investment ( PRI) by investors over the past two years has created a significant new pool of capital specifically targeting green projects. In response to these developments, companies, financial institutions and governments have started issuing “green bonds” as a means of accessing capital. “
“While Japan has announced its goal of achieving net zero emissions by 2050 in October 2020, green bond / debt issuance has recovered significantly and is expected to continue to rise. The substantial expansion of green bonds / debt is not unique to Japan, but is reflected around the world, ”I-Ching said.
“As the green bond market is still developing, regulatory or legal guidelines specific to green bonds or green loans are still in their infancy. Indeed, there is no uniform definition of what constitutes a green loan or a green bond. Rapid developments in legal frameworks are needed to ensure that proceeds are actually used to finance green projects, and that adequate auditing and reporting standards are established to protect bondholders’ rights, ”she said.