Japan Railway Construction, Transport and Technology Agency (JRTT) in first Certified benchmark size green issuance
Nikkei is reporting that JRTT will go to market with a Climate Bonds Certified green bond, part of a shift towards sustainability finance. This certification will be a first for the giant rail agency, who are responsible for the construction and maintenance of Japan’s world famous high speed ‘Shinkansen’ rail network and other express lines and domestic routes.
The bond will fund rail infrastructure improvements and network upgrades. DNV GL Business Assurance Japan has provided the Verification Report, available in English and in Japanese and the linkage/contribution is to SDG 9-Industry Innovation and Infrastructure, SDG 11-Sustainable Cities & Communities and SDG 13-Climate Action.
Climate Bonds has previously noted that green bonds are a bridge to achieving key SDGs, our briefing is available here.
We understand that this issuance is the first in a series that may ultimately total up to JPY117bn (USD1bn) and JRTT will follow the Climate Bonds streamlined Programmatic Certification process, developed for large and repeat issuers with ongoing green finance programs.
We can confirm pre-issuance Certification has been granted by the Climate Bonds Standard Board under the Low Carbon Transport Criteria.
The last word
JRTT made their first green bond move in February 2018, with our June 2018 Market Blog carrying details. This latest development is confirmation that the agency is adopting international best practice in green issuance, joining the ranks of other major rail operators including NY MTA, SNCF and SGP who all have Certified green bond programs.
Congratulations to JRTT!
We’ll keep you posted as more details emerge.
‘Till next time
PS: Want to know more about green bonds in Japan? Check out our special November 2018 post on the launch of the Green Finance Network Japan and don't miss our comprehensive Japan State of the Market report launch, due for publication next week.