Renewable Japan Co Ltd announced that a green development fund of JPY 10.15 billion was raised for its solar power generation business. The amount, which is equivalent of about $92.42 million will be used to develop a 25.76 MW solar project in the Japanese city of Minamikyushu in the Kagoshima prefecture. The solar project is expected to offset some 10,573 tonnes of carbon dioxide emissions annually.

To finance the solar project, a project bond called RJ Renewable Energy Project Bond IX, which is set to mature on February 20, 2041 was issued by Renewable Japan for this purpose. This bond was arranged by the local brokerage firm Barclays Securities Japan Ltd with Hitachi Capital Trust Corp acting as the trustee. This is the 9th green bond and green loan issued in the form of project finance by the company. All the green bond and loans cumulate up to about JPY 81.6 billion

Recently, in February 2021, Renewable Japan had also launched a green development fund of JPY 12.7 billion for solar power generation. Established in 2012, Renewable Japan Co., Ltd. Has a total capital of JPY 4219.05 million, including capital reserves.

Japan is a country which relies mainly on fossil fuels to meet its energy needs. However, the events at the nuclear power plant in Fukushima following the 2011 earthquake and tsunami have shifted energy policies towards greater renewables adoption. While a FiT scheme was launched earlier, this gave way to auctions in 2017, which have since the key policy instrument driving the Japan’s transition to renewables.