Sustainable or ESG financing Bank of Japan (BoJ) marks the highest record made accounting for a 12.9% share for overall lending early this year. The number is more than half increase compared to the same period last month at 3.1%. Borrowers are becoming active these days. Mitsubishi Motors for instance completed $1bn for one-year positive impact finance loan. In Japan, it is the largest borrowing.
Obayashi, the Tokyo-listed construction firm, also completed a ¥70bn five-year debut sustainability-linked loan. It has actively attracted 34 lenders in general syndication. In addition, dairy products maker, Megmilk Snow Brand signed a ¥8bn six-year SLL along with nine prefectural banking federations of agricultural cooperatives joining arranger from Norinchukin Trust and Banking.
Hiroshi Akutagawa, a senior manager of food planning division at Norinchukin Bank is confident that due to its presence as a lead, it has lowered hurdles. He believed that the group expanded because JA Shinnoren banks participated in the ESG loans. By 2030 the bank aims at providing ¥10trn serving 5000 agricultural, fishing, and forestry cooperatives.
The Ministry of Economy, Trade, and Industry have started the sector roadmaps. They have the confidence that the high-emission industries would meet the decarbonization goal. One of the most active ESG financing lenders, the state-owned Development BoJ launched a transition business for office promotion. The bank also sets plans for transition loans.
The transition loan has attracted Sumitomo Joint Electric Power to sign a nine-year ¥8bn. It was the first loan from the manufacturing sector. This year, the company also plans for another ¥10bn for 10-year loan. In September last year, Kawasaki Kisen, the shipping company, closed a ¥10bn of five-year transition-linked loan. It was the largest country financing.