Banking giant Mizuho issues largest €800m green bond ever pegged in Japan

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Tokyo-based banking and financial services company Mizuho Financial Group announced on September 5 the issuance of an 800 million euro (~$794.7 million) green bond to finance green projects and help the bank to achieve its sustainable financing objectives. Notably, this new bond represents Japan’s largest euro-denominated green bond to date.

The maturity date of this bond is set for September 5, 2027, offering an interest rate of 3.490%. In the press release, the company outlined its environmental policy, which aims to limit global temperature rise to 1.5°C, seeking to reach Net Zero by 2050.

“We have promoted our sustainability initiatives as an integral part of our corporate strategy. Recognizing that climate change is one of the most critical global issues that could impact the stability of financial markets, we have positioned addressing environmental issues and climate change as a key part of our business strategy .

Transition process

In an attempt to expand its positive environmental impacts, Mizuho is seeking to spend 12 trillion yen (~$85.3 billion) from 2019 to 2030 to promote its initiatives. Moreover, this new green bond of 800 million euros represents only a part of the environmental financing that Mizuho will deploy.

In addition, the green bond is based on a green bond framework formulated in accordance with the International Capital Market Association’s 2018 Green Bond Principles and the Japanese Ministry of Environment’s 2020 Green Bond Guidelines. A third-party certification body, Sustainanalytics, has reviewed the requirement.

Mizuho Bank, Ltd. will receive the proceeds of the bonds, which will then be used to finance environmentally friendly projects, such as, for example, renewable energy projects. Overall, Mizuho focuses on sustainable investments, including responses to climate change and the transition to a low carbon society.

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