Orix Corporation to Issue its First Green Bond in Japan

The ORIX Corporation (ORIX) has decided to issue its first Green Bond (unsecured straight bonds) in the domestic market of Japan.

The ORIX Corporation (ORIX) has decided to issue its first Green Bond (unsecured straight bonds) in the domestic market of Japan. Green bonds are bonds issued by companies to finance green projects (such as renewable energy, construction and renovation of energy‐saving structures, and projects with environmental improvement effects such as the prevention and management of environmental pollution).

Through the issuance of Green Bonds, all funds raised will be used for the firms’ solar power generation business. ORIX has received a second‐party opinion from Sustainalytics, a global third‐party ESG assessment company, for our eligibility as a green bond.

“ORIX Corporate Sustainability Policy” identifies materiality in the Environment and Energy Business, Automotive Business, and Real Estate Business, which have a significant impact on society, and prioritises solutions to these issues. In the Environment and Energy Business, which is subject to this Green Bond, the firm is actively promoting renewable energy businesses such as wind power, geothermal power and biomass power generation, including the development and operation of solar power generation business with a total capacity of approximately 1,000 MW in Japan.

By promoting its Renewable Energy Business, it hopes to address the global challenge of climate change and achieve long‐term business growth.

Through the issuance of Green Bonds, the company will also diversify its fund procurement and contribute to the realisation of a sustainable society through our business activities.

In October, after months of deliberations and multiple hearings seeking approvals, crisis-hit IL&FS had said that it had completed the sale of its seven wind energy assets to Orix Corporation of Japan for Rs 4,900 crore, helping the debt-ridden company to resolve its debt of over Rs 4,300 crore.

In a statement, IL&FS said, “IL&FS completes sale of its 51 percent stake in seven SPVs (special purpose vehicles) under Wind Energy Assets portfolio to Orix Corporation of Japan. The transaction marks the completion of the first set of resolutions under the new board.”

The seven operating wind power SPVs, with 874 MW of generation capacity, was held under IL&FS Wind Energy Ltd, a subsidiary of IL&FS.