1. Home
  2. Asia - Pacific
  3. Hudson Sustainable Group Closes Inaugural Green Bond in Japan
Hudson Sustainable Group Closes Inaugural Green Bond in Japan

Hudson Sustainable Group Closes Inaugural Green Bond in Japan


NEW YORK: Hudson Sustainable Group (Hudson) announced today that it has closed the firm’s inaugural green bond in the Japanese market, with the issuance of 7.3 billion JPY (~$70.5 million USD). The bond is rated BBB and has received a Green 1/g1/m1 rating, the highest green rating under the Green Finance Framework by Japan Credit Rating Agency, Ltd. It is considered the most diversified solar PV portfolio bond issuance to-date in the Japanese market. The assets underlying the notes are a portfolio of thirty-three operating solar PV assets located throughout the country, with a total generating capacity of 29 MWdc. These projects have Japanese Feed-in-Tariff (FiT), standardized government-backed revenue contracts with 20 years of life. The portfolio is anticipated to generate approximately 34,000 MWh of solar energy annually and reduce more than 15,800t of CO 2 greenhouse gas emissions annually. Deutsche Bank AG, a leading investment bank with a global network financed the original acquisition of the portfolio for Hudson in 2019.

The green bond closed on January 22, 2021, and will be held by global institutional investors arranged by Nomura Securities Co., Ltd. Nishimura & Asahi acted as the issuer’s legal counsel and separately acted as counsel to the Nomura investors respectively.

This transaction is the second green bond issuance by Hudson and builds on the firm’s long-term track record in the renewable energy space. Hudson will continue to fund and manage eligible green projects.

The closing of the green bond is consistent with Hudson’s focus on investing in companies and assets that promote the sustainability of the physical and social environment, consistent with the United Nations Sustainable Development Goals. As part of this mission, Hudson has published its Green Finance Framework. The framework is based on the Green Bond Principles 2018 and the Green Loan Principles 2020, a set of voluntary guidelines that aim to promote integrity and transparency in the green bond and loan markets. The framework will support Hudson’s mandate to finance projects that promote low carbon energy sources, resource efficiency, efficient production methods, sustainable transportation, infrastructure resiliency, and human development and safety.

“We are pleased to have closed our inaugural green bond in the Japanese market. This is our second green bond issuance, following the issuance last month of a US$97 million green bond in Uruguay, said Neil Auerbach, Hudson’s Chief Executive Officer and Managing Partner. This green bond represents a continuation of our commitment to generate a positive environmental impact and to contribute to the U.N.’s Sustainable Development Goals.”

Sustainalytics, a leading provider of ESG research and ratings, provided a second-party opinion that independently confirmed the environmental benefits of Hudson’s Green Finance Framework.

To view additional details on Hudson’s sustainable bond and loan issuance strategy, please visit https://www.hudsonsustainable.com/esg-initiatives to download the Framework and second-party opinion.

About Hudson

Hudson Sustainable Group (“Hudson”, or the “Company”) is focused on investing in the sustainability sector globally, with an emphasis on renewable energy, resource efficiency, and other aspects of sustainable technology. Founded in 2007, Hudson acts as a principal investor and manager and has made 20 investments to date in 26 countries. For more information, visit www.hudsonsustainable.com.

About Nomura Securities Co., Ltd

Nomura is a global financial services group with an integrated network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its four business divisions: Retail, Asset Management, Wholesale (Global Markets and Investment Banking), and Merchant Banking. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.

Source: Hudson Sustainable Group
Anand Gupta Editor - EQ Int'l Media Network