First Japanese Utility Considers Issuing Green Bonds
First Japanese Utility Considers Issuing Green Bonds
(Bloomberg) -- Tokyo Electric Power Co. Holdings Inc. could become the first Japanese utility to issue green bonds, as it mulls a sale of such securities.
The company is considering raising funds via its new unit Tepco Renewable Power Inc., which was established this month to take over the renewable energy business, according to spokesman Takao Takagi. Details such as the timing, size and currency are still being discussed, he said.
Tepco has been increasing the size of its bond sales since returning to the debt markets in 2017 after the the Fukushima nuclear disaster in 2011, as investors have been attracted to its relatively high yield premiums. Japanese utilities, which are among the biggest sellers of yen corporate notes, haven’t sold green bonds so far, and their introduction may depend on progress in the country’s usage of renewable energy sources.
Environmental, social, governance and green yen-denominated bond sales in Japan are expected by some bankers to expand to over 1 trillion yen ($9 billion) next year. That compares with 795.5 billion yen so far this year, after 353 billion yen in 2018, according to Bloomberg-compiled data. The nation’s green note issuance is still limited to a few sectors such as finance, construction and leasing.
To contact the reporter on this story: Ayai Tomisawa in Tokyo at atomisawa@bloomberg.net
To contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Ken McCallum
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