Offshore wind financing ready to take off

JAPAN: Construction company Toda has announced the issue of a JPY 10 billion, five-year green bond, with 100 % of the funds raised used to finance development of a floating offshore windfarm near the Goto Islands off southern Japan.

Toda's 2MW floating turbine (pic: Gota City)
Toda's 2MW floating turbine (pic: Gota City)

Toda installed a 2MW spar-type floating offshore wind turbine off the Goto Islands in April 2016. 

Unusually for Japan, the project is under the control of the environt ministry and not the economy, trade and industry ministry.

Toda is now looking to develop a 22MW floating offshore wind farm adjacent to the existing project, with a targeted launch date in 2021-22 financial year.

The bond will be issued in December, and lead-managed by Mitsubishi UFJ Morgan Stanley Securities, with Toda's green credentials underwritten by Tokyo-based Rating and Investment Information, with a second opinion from Sustainalytics.

Other sustainability-driven bonds have been issued in Japan by regional governments and quasi-government banks where procured funds have been used for purposes including real estate purchases, but the Toda bond is the first time a purely private-sector company has ventured into the market, feeding into expectations that others will follow.

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