According to Bloomberg, the Japanese power company Tohoku Electric Power Co. plans to fund offshore wind projects with a landmark sale of green bonds in order to give a boost to the region’s environmentally friendly investments.
In fact, Tohoku Electric Power will offer around $46 million and a 10-year security to every business project concerning the development, construction and renovation of renewable energy.
We had decided to issue Tohoku Electric Power Green Bond from the perspective of expanding renewable energy and ensuring diversification of financing. This green bond limits the use of the procured funds to projects that have environmental improvement effects at home and abroad, such as the development of renewable energy.
…the company announced.
For the records, the company seeks to award seven wind farms and offshore wind projects in Akita, Aomori and Iwate regions, and a geothermal project in Indonesia.
Moreover, the utility recently received a certification from the non-profit organization, Climate Bonds Initiative, the first one to create green-bond standard back in 2010.
“Certification from the Climate Bonds Initiative “was not absolutely necessary, but we decided to get it to pursue greater transparency for our first green bonds” said Yasunori Majima, manager at the utility’s accounting and finance department to Bloomberg.
Concluding, the company’s move towards green securities came after the utility decided to spread its renewables business back in early 2019.
