Tohoku Electric Power Company, headquartered in Miyagi Prefecture, announced on January 29, 2020 that it has decided to issue a Tohoku Electric Power Green Bond in order to expand its renewable energy business and increase diversified funding procurement.[1] The Green Bond is expected to be issued in February 2020 and will be used for investment and refinancing in renewable energy development, construction, operation, and renovation projects.[2] Tohoku aims to develop 2,000 GW of renewable energy, mainly wind power. The funds raised through the Green Bond will be used mainly for renewable business activities.

To issue the Green Bond, DNV GL Business Assurance Japan K.K. (DNV GL), a third-party certification body headquartered in Kobe City,[3] evaluated and verified the Green Bond’s compliance with various standards related to green bond issuance. A Tokyo-based stock investment and fund management firm, SMBC Nikko Securities,[4] will be mainly responsible for issuing the 10-year green bonds with a total value of JYP 5 billion (app. $ 46 M). Details will be announced at the time of issuance.

Tohoku is the first Japanese former general electricity utility to obtain certification for a Green Bond from the Climate Bonds Initiative (CBI), an international non-profit organization located in London that sets strict standards for ensuring the reliability and transparency of green bonds.[5]

[1] http://www.tohoku-epco.co.jp/news/normal/1205380_1049.html

[2] http://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2020/01/29/1205380_b1.pdf

[3] https://www.dnvgl.jp/about/overview/business_assurance.html

[4] https://www.smbcnikko.co.jp/company/info/profile/index.html

[5] https://www.climatebonds.net/