Tokyo Gas to issue $95.5 million green bonds for solar projects

Out-Law News | 11 Nov 2020 | 9:47 am |

Japan's largest provider of city gas Tokyo Gas Group has planned to issue $95.5 million (¥10 billion yen) in green bonds for financing 563-megawatt (MW) solar projects.

The company will issue 10-year green bonds by a public offering platform up to $95.5m this December. Mitsubishi UFJ Morgan Stanley Securities Co Ltd and SMBC Nikko Securities Inc are acting as lead managers, according to a report.

It plans to finance and refinance two solar projects: the 514MW Aktina solar PV project in Texas in the US; and the 63.2MW Annaka solar PV project in the Japanese Gunma Prefecture. It acquired the project from private equity firm Asia Pacific Land in February.

Tokyo Gas also established the Tokyo Gas green bonds framework to fundraise, evaluate projects and for fundraising management and reporting, a report of Tokyo Gas said.

A third party assessment organisation is evaluating and verifying conformity with various standards on the issuance of green bonds.

Green bonds started in 2007. In 2019 issuers launched over $250 billion in green bonds offerings, 51% growth year on year, according to pv magazine.

I-Ching Tseng, an infrastructure expert at Pinsent Masons, the firm behind Out-Law, said, "The transition to green energy and clean tech is inevitable, as nations unite to counter the effect of climate change."

"Efforts by governments, private organisations and individuals in achieving renewable targets and energy efficiencies are required in this joint effort. The increase in green projects and related financing activities also signal new opportunities for companies." she said.