Green finance
Investment and loans related to the Bank of Japan Climate Response Financing Operations
Supporting the issuance of sustainable bonds
Environment–related projects
Finance for environmentally conscious companies
Green Loans
Mizuho Eco Finance
Transition finance
Environment–related loans to individual customers
Investment and loans related to the Bank of Japan Climate Response Financing Operations
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)
Supporting the issuance of sustainable bonds
Mizuho Securities is contributing to the expansion of the sustainable finance market by strengthening the support system for the issuing of Sustainable bonds*2 through its Sustainability Promotion Department, providing sustainable finance including Sustainable bonds structuring support, developing sustainability stories for customers, and collecting Sustainability-related information.
Our track records:
・No. 1 domestic Sustainable bonds underwriting volume for five consecutive years since FY2019*3
・No. 1 domestic Sustainable bonds structuring agent for four consecutive years since FY2020*3
・The Environmental Finance's Sustainable Debt Awards 2024 for Lead manager of the year, green bonds – local authority/municipality and added Lead manager of the year, transition bonds to its haul
・The ESG Finance Awards Japan from the Ministry of Environment for four consecutive years
・The Sustainable Finance House of the Year from REFINITIV DealWatch Awards 2023 for four consecutive years
*2 Green, social, sustainability, and other bond Initiatives.
*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
Mizuho Securities' sustainable business/finance (Sustainable BX Partner)
Environment–related projects
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
Finance for the world's first next-generation geothermal power and district heating project in Germany (FY2024)
Mizuho, MUFG and DBJ jointly arrange project financing for Kitakyushu-Hibikinada Offshore Wind Farm (FY2023) (PDF/500KB)
Mizuho Bank arranges project financing for the floating offshore windfarm project in France (FY2022)
Mizuho has been leading the listed infrastructure fund market to assist the sound scaling-up of renewable energy. Since listed infrastructure funds invest in assets including power-generating facilities using renewable energy sources, they are also attracting attention as destinations for ESG investment. On the back of their characteristics as pure players, many listed infrastructure funds have recently developed an equity financing framework, obtaining certification as "green equity" by third-party rating agencies with reference to the Green Bond principles. We have been providing our full support for the listing and new equity issues of numerous infrastructure funds, including the listing of the very first fund on the Tokyo Stock Exchange's Infrastructure Fund Market in June 2016, when Mizuho Securities acted as the sole listing lead manager, Mizuho Trust & Banking served as an administrator of the investors' registry, and Mizuho Bank led the arranging of financing.
Since 2019, Mizuho Securities has been involved in all IPOs and new equity issues by the listed infrastructure funds as listing lead manager. Indeed, the total amount underwritten by Mizuho Securities in FY2022 and 2023 amounted to JPY 42.2 billion, accounting for 82.1% of the JPY 51.4 billion in issuances for the entire market. We also serve as secretariat to the Listed Infrastructure Fund Council, established by the five existing listed infrastructure funds in March 2023 with the objective of facilitating the expansion and development of listed infrastructure funds, and sound development of the market. Thus, Mizuho Securities has been substantially contributing to the promotion of decarbonization by helping expand and develop listed infrastructure funds that work to turn renewable energy into a permanent power source through disciplined arrangements and operation by leveraging private capital.
Results of environment–related finance
Results as lead arranger for project finance in the renewable energy division (PDF/5,920KB)
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.
Green loans
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
Mizuho Eco Finance
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)
Announcing the launch of Mizuho Eco Finance
Transition 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 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
Environment–related loans to individual customers
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.
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
| End of Mar. 2021 | End of Mar. 2022 | End of Mar. 2023 | End of Mar. 2024 | |||||
| Number | Balance (Millions of JPY) | Number | Balance (Millions of JPY) | Number | Balance (Millions of JPY) | Number | Balance (Millions of JPY) | |
| Environment–related loans for individuals | 1,469 | 24,741 | 1,402 | 22,803 | 1,314 | 20,621 | 1,259 | 18,990 |
| Of which all–electric housing loans | 1,404 | 24,679 | 1,351 | 22,748 | 1,269 | 20,569 | 1,221 | 18,948 |
| Of which Mizuho Bank remodeling loans which remodel an existing home to benefit the environment | 52 | 58 | 48 | 54 | 44 | 51 | 38 | 42 |