Mizuho Financial Group (MHFG) [8411:JP], the controller of Japanese megabank Mizuho Bank, has issued a EUD800m (USD796.2m) green bond to finance environmental-friendly projects, as reported by ESG Today on September 5. This represents the largest euro-denominated green bond issued by a Japanese financial institute. This is also the second green bond issued by the MFG this year, following a USD500m offering in February. Under the group’s green bond framework, eligible funding categories include renewable energy, clean transportation, pollution prevention and control, and green buildings.
Green bond issuance is part of MFG’s plan to boost environmental finance. The group vowed to reach net-zero carbon emissions by 2050 and help the efforts to limit the rise in global temperature to 1.5°C. To realize the target, it planned to allocate JPY12tr (USD83.8bn) to environmental finance and JPY13tr (USD90.8bn) to sustainable finance from FY2019 to FY2030. Aside from green bonds used for financing environmental initiatives, transition bonds are also blooming in Japan. Transition bonds are mainly issued by enterprises seeking to fund their decarbonization activities. During the first seven months of the year, Japanese companies have issued transition bonds worth JPY285bn (USD1.99bn), 14 times more than in all of 2021.