Investment and loans related to the Bank of Japan Climate Response Financing Operations
Supporting the issuance of SDG bonds
Finance for environmentally conscious companies
Mizuho Eco Finance
Environment–related loans to individual customers
Mizuho Bank and Mizuho Trust & Banking have been selected as financial institutions to receive financing under the Bank of Japan’s Climate Response Financing Operations*. We have notified the Bank of Japan of the following financing activities under the operation.
* Financing operations to support responses to climate change
Mizuho Bank Report on "Disclosure of Targeted Investments and Loans" in Climate Response Financing Operations (PDF/229KB)
Mizuho Trust & Banking Report on "Disclosure of Targeted Investments and Loans" in Climate Response Financing Operations (PDF/152KB)
Mizuho Securities is contributing to the expansion of the sustainable finance market by strengthening the support system for the issuance of SDGs bonds*2 through its Sustainability Promotion Department, providing sustainable finance including SDGs bonds structuring support, developing sustainability stories for customers, and collecting ESG-related information.
・No. 1 domestic SDG bond underwriting volume for three consecutive years since FY2019*3
・No. 1 domestic SDG bond structuring agent for two consecutive years since FY2020*3
*2 Green, social, sustainability, and other bond Initiatieves.
*3 Based on information from Refinitiv and Capital Eye, compiled by Mizuho Securities (excluding in-house bonds and securitization). Based on the date of determination of terms and conditions.
Mizuho's initiatives related to sustainable finance
Underwriting of publicly offered SDG bonds in Japan (PDF/1,474KB)
Leveraging its accumulated know–how in project finance, Mizuho Bank is proactively providing financing for such renewable energy projects as those involving solar power, geothermal, and wind power generation. Regarding large–scale development projects, Mizuho Bank is working to ensure due consideration for the environment and society in accordance with the Equator Principles.
Mizuho Bank's financing for renewable energy projects
Mizuho Bank arranges project financing for the floating offshore windfarm project in France (FY2022)
Mizuho arranges project finance deal for power plant project in Bangladesh (FY2020)
Mizuho Bank arranges project financing for the largest solar photovoltaic power project in Qatar (FY2020)
Financing support for renewable energy projects (FY2018) (PDF/8,127KB)
Project Financing for Solar Photovoltaic Project in India (FY2017)
Karumai East Photovoltaic Project (Japan) (FY2017)
Results of environment–related finance
Mizuho Bank offers Mizuho ESG–Assist (Eco)*4 and Mizuho ESG Private Placement (Eco)* environmentally conscious financing products to respond to the working capital and investment capital needs of companies that are practicing environmentally conscious management or proactively addressing environmental problems, and to companies investing in facilities to improve the environment.
*4 Product name was changed on December 18, 2018.
Offering loans that fund initiatives aimed at preventing global warming and promoting energy saving and that qualify for interest subsidies
Mizuho Bank provides loans that qualify for various interest subsidy programs. These include the Japanese Ministry of the Environment’s Interest Subsidies for Promoting Reduction of Environmental Risk and Interest Subsidies for Financing Environmental Risk Research. Other such subsidies are also provided under the Subsidies for Promoting the Introduction of Specified Equipment for Improving Efficiency of Energy Usage program of the Agency for Natural Resources and Energy under Japan’s Ministry of Economy, Trade and Industry. These programs provide interest subsidies from the national government and other sources for environmentally conscious capital investment loans meeting certain requirements. Eligible loans include capital investment in facilities that prevent global warming, energy conservation, and other investments that have environmental protection objectives, including research on the environmental impact of projects. In addition, when providing finance for projects under the Interest Subsidies for Financing Environment Risk Research program, Mizuho Bank conducts environmental risk due diligence.
Mizuho Bank offers loans qualifying for similar interest subsidy programs from Japan’s Ministry of the Environment and from the Agency for Natural Resources and Energy under Japan’s Ministry of Economy, Trade and Industry, thus helping companies that are taking initiatives to prevent global warming and promote energy conservation.
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(Millions of JPY)
(Millions of JPY)
|Finance for environmentally–conscious companies*
* Including Mizuho ESG Private Placement (Eco) and Mizuho ESG Private Placement (Eco) Plus.
Uses of green loans are limited to business activities that show due regard for the environment. As the flow of funds into environmental, social, and governance (ESG) investments has expanded, in March 31, 2018, the Loan Market Association and the Asia–Pacific Loan Market Association jointly prepared and issued their Green Loan Principles, which are the rules for making loans and specify that the funds must be used in environment–related fields.
On August 24, 2018, Mizuho Bank signed its first green loan contract based on these principles. Going forward, Mizuho will also provide proactive support for companies that are responding to ESG issues through the provision of green loans.
Execution of a green loan to Kenedix Retail REIT Corporation (FY2022) (PDF/386KB)
Execution of a green loan to NTT Finance Corporation (FY2022) (PDF/165KB)
Mizuho Bank concludes a green loan agreement with JX Metals Circular Solutions Europe GmbH (FY2022)
Mizuho signs Green Loan Agreement
Provision of new fund–raising methods and investment products aimed at wider use of renewable energy sources
To assist in the development of a sustainable society, we provide various types of support to expand the use of renewable energy. In June 2016, the Takara Leben Infrastructure Fund, which invests mainly in photovoltaic facilities, became the first fund to be listed on the Tokyo Stock Exchange’s Infrastructure Fund Market. At the time, we provided our full support with Mizuho Securities acting as the listing lead manager, Mizuho Trust & Banking performing the role of an administrator of the investors’ registry, and Mizuho Bank serving as the lead in arranging the financing. Entities across the Mizuho group have collaborated to support IPOs and new equity issues in the Infrastructure Fund Market, as well as support funding related to renewables and market investment products throughout the world. The total amount underwritten by Mizuho Securities from 2016 to the end of March 2022 was JPY 76.1 billion, accounting for 49.4% of the JPY 154.2 billion in issuances for the entire listed infrastructure fund market.
To promote the shift to a low–carbon society alongside our clients, in June 2019 Mizuho Bank and Mizuho Information & Research Institute (currently Mizuho Research & Technologies) launched Mizuho Eco Finance (Mizuho Environmentally Conscious Finance). This service evaluates the climate change initiatives of clients, allowing us to provide further support via financing and consulting to companies who are actively engaged in combating climate change.
Using an environmental assessment model developed by Mizuho Research & Technologies (formerly Mizuho Information & Research Institute) and featuring a globally accepted environmental verification and evaluation program, Mizuho Bank will provide financing to clients who meet a certain minimum score, and through monitoring by Mizuho Research & Technologies, we will provide strategic advice to clients to improve and maintain their scores.
Execution of Mizuho Eco Finance to Chubu Electric Power (PDF/143KB)
Mizuho Bank begins providing Mizuho Eco Finance services to Hitachi (FY2022) (PDF/72KB)
Mizuho Bank begins providing Mizuho Eco Finance services to Ricoh (FY2021)
Mizuho concludes Mizuho Eco Finance deal with Hitachi (FY2020)
Mizuho Bank begins providing Mizuho Eco Finance services to Idemitsu Kosan (FY2020)
Mizuho concludes Mizuho Eco Finance deal with Furukawa Electric (FY2020)
Announcing the launch of Mizuho Eco Finance
We are particularly strengthening our transition finance initiatives to support the transition of clients in sectors with high levels of carbon emissions. Transition finance is a financing method* that aims to support the initiatives of clients considering climate change measures for greenhouse gas reduction in line with a long-term strategy toward a low-carbon society.
* From the “Basic Guidelines on Climate Transition Finance” released by Japan’s Financial Services Agency, Ministry of Economy, Trade and Industry, and Ministry of the Environment
Mizuho Bank concludes agreement with Kawasaki Kisen Kaisha for the first transition-linked loan in Japan (FY2021)
Mizuho Bank extends the first transition loan in Japan to Kawasaki Kisen Kaisha (FY2020)
Mizuho Securities as lead manager and structuring agent for a number of transition bonds, and conducts seminars and other initiatives to expand the transition finance market.
Mizuho’s Track Records of Underwriting / Arranging Sustainable Finance
Seminars and other initiatives to expand the market
To support individuals' environmental protection efforts, Mizuho Bank offers loans with lower interest rates that are available to customers who want to remodel their existing home, or build or purchase a new home that is more environmentally friendly, such as by employing solar power generation or all–electric systems. With this in mind, we are also implementing a system under which we will purchase 1.4 tons of domestic CO2 emissions credits for each eligible loan transaction and donate them to the national government.
Under this initiative, Mizuho Bank loans benefit the environment in ways beyond the environmentally friendly homes purchased using the loans. The initiative also contributes to the proactive environmental efforts of Japanese companies by promoting the J–Credit Scheme* (formerly the Domestic Credit Scheme) as well as the attainment of Japan's CO2 emissions reduction targets.
* The Domestic Credit Scheme and the Offset Credit (J–VER; Japan's verified emissions reduction) Scheme were integrated in 2013.
Natural Disaster Support Loans
In cooperation with Sompo Japan Insurance, Mizuho Bank has begun offering housing loans with built–in relief for disaster–affected customers in the event of an earthquake, disaster resulting from a torrential rainstorm, or other natural disaster, through which eligible customers have part of their scheduled payments or loan debt reduced. This housing loan product addresses risks that are not fully covered by conventional insurance, and by partially reducing scheduled payments or loan debt in the event of a natural disaster, can reduce the strain on household finances, specifically the burden of housing loan repayment.
Balance of environment–related loans for individuals
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|End of Mar. 2022
(Millions of JPY)
(Millions of JPY)
(Millions of JPY)
|Environment–related loans for individuals
|Of which all–electric housing loans
|Of which Mizuho Bank remodeling loans which remodel an existing home to benefit the environment