Japan Local Govts Active in Issuing Green Bonds
Tokyo, June 28 (Jiji Press)--Local governments in Japan have been active in issuing so-called green bonds, proceeds from which are used for projects taking account of environmental concerns, amid growing moves to tackle climate change around the world.
The Japan Finance Organization for Municipalities (JFM), which procures funds from markets on behalf of local governments, issued 1 billion euros of green bonds in total in Europe in 2020 and this year for regional sewage projects.
The amount was huge for Japanese local green bonds. But the bonds attracted heavy demand, mainly from European institutional investors, who are generally enthusiastic about environmental protection. Total bids were seven to eight times more than the procurement targets. As a result, the bonds were issued at low coupon rates, a JFM official said.
Proceeds worth 500 million euros from the green bonds issued by the JFM in 2020 are for projects to build and improve sewage treatment facilities and related equipment in municipalities including the cities of Sapporo in northern Japan, Sendai in northeastern Japan, Hamamatsu and Nagoya in central Japan, Kobe in western Japan and Kagoshima in southwestern Japan.
The Tokyo metropolitan government and the prefectural government of Nagano, central Japan, have also issued green bonds for purposes such as introducing renewable energy and taking measures against flooding.
[Copyright The Jiji Press, Ltd.]