Environment, energy and infrastructure
Environment and energy
Every country around the world must undertake initiatives that contribute to protecting the global environment in order to attain the sustainable development of the economy and local communities. Once this is safety is ensured, countries will face the challenge of providing a sustainable supply of energy that is both stable and economically viable.
We believe that, through our core business of providing financial products and services, we must promote the concept of environmental conservation throughout society. To this end, we are promoting initiatives in growth fields related to the environment and energy where Japanese companies can assert their competitiveness based on their highly advanced technologies.
Drawing on our knowledge as a global financial group, we will develop and offer financial products and services that encourage society to promote environmental considerations.
For more details, please access "Environmental finance".
- Environment–related funding provided by Mizuho Bank
We were awarded Environmental Finance of the Year (Solar Category) by Environmental Finance in March 2016, in recognition of financing for a solar photovoltaic (PV) power plant project located in Jordan which was arranged by Mizuho Bank. With an expected output of 52.5 megawatts, this is one of the largest solar PV power plant projects in the Middle East. It is also the first solar power project in the Middle East financed by commercial banks.
- First solar power generation project in the Hashemite Kingdom of Jordan Financed by Commercial Banks
Surveys and research into environmental and energy policy, and consulting services for environmental management
In the area of environmental issues, we have developed channels with specialist institutions both in and outside Japan, and work to gather expertise and the latest information. Drawing on our abundant accumulated knowledge, we offer companies management advice and consulting on environmental problems.
Mizuho Information & Research Institute (MHIR) has long been involved in contract research and consulting related to the environment and energy in partnership with government agencies, relevant research institutes, and cutting–edge environmental companies. Mizuho Information & Research Institute has compiled an extensive track record and a wealth of expertise and information in various areas, including environmental and energy technology evaluation and CO2 emissions transparency. Leveraging this experience, Mizuho Information & Research Institute helps clients deal with issues related to the environment and develop corporate and business strategies.
For more details, please access "Research and consulting services".
Establishing a safe, sustainable, and resilient infrastructure serves as a base for economic and social development. We are working to make use of our sophisticated professional capabilities in the fields of project finance and public–private partnership (PPP) *1 and private finance initiative (PFI) *2 arrangements and are collaborating with local governments and agencies to actively supply funding and consulting services.
- *1A public–private partnership (PPP) is a cooperative arrangement between the public and private sectors to provide public services and infrastructure.
- *2A private finance initiative (PFI) is a common type of PPP for which the private sector takes a leading role in providing public services wherein private funding and expertise are used in the maintenance and operation of public facilities.
Launch of an infrastructure debt fund targeting project finance debt globally
In July 2016, Mizuho Global Alternative Investments, in collaboration with Mizuho Bank, launched Japan’s first infrastructure debt fund entitled Cosmic Blue PF Trust Lily.
Cosmic Blue PF Trust Lily is a fund that invests in project finance debt held by banks.
Investments in project financing are expected to generate long–term stable cash flows. On the other hand, since these arrangements require sophisticated professional skills, thus far only a limited number of financial institutions have participated in this market. However, through this new fund, we can now offer project finance debt investments to a broader range of institutional investors.
Going forward, we will continue to offer investment opportunities in project finance senior debt to institutional investors globally.
Initiatives related to overseas project financings making use of PPP schemes
Mizuho Bank made use of PPP schemes outside Japan and implemented initiatives related to infrastructure projects.
Infrastructure maintenance through SRI–related funds
Mizuho Securities donates a portion of the trust fees it receives from beneficiaries of its Global High Yielding Pure Infrastructure Fund (Monthly Dividend) (Growth Type) and Global High Yielding Advanced Infrastructure Fund (Currency Select Type), which invest in equities of such companies as those holding infrastructure–related assets, including roads, airports, ports, and harbors, to organizations that are working to improve the infrastructure in developing countries.
Companies that are included in the investments of equity investment trusts and are called "pure infrastructure companies" are those that own or manage infrastructure assets and are expected to show sustained growth along with the emergence of new infrastructure demand in the emerging countries and expansion in demand for the renewal of the infrastructure in industrialized countries.
Mizuho's involvement in the management and sale of major SRI–related funds and bonds, as well as other initiatives, can be viewed here.
Support for introduction of PPP/PFI
Mizuho has proactively supported the introduction of PPP/PFI for airports and public facilities as a part of initiatives to revitalize outlying regions, an issue of vital importance to the Japanese economy.
Project financing for the concession of Kansai International Airport and Osaka International Airport
In March 2016, Mizuho Bank arranged project financing for the concession of Kansai International Airport and Osaka International Airport, the largest airport privatization concession in Japan.
The project financing entails syndicated loans totaling approximately JPY190 billion provided to Kansai airports, which was established by ORIX Corporation and France–based VINCI Airports S.A.S., as well as other investors. Mizuho Bank and Sumitomo Mitsui Banking Corporation are the Lead Arrangers and Bookrunners in the deal. The project financing is a first in Japan for a concession operation, and the largest–ever project financing deal completed in Japan.
PPP/PFI Advisory Services
As a pioneer in the PFI business in Japan, Mizuho Research Institute has a track record of completing more than 400 research and advisory projects for the public sector (i.e., for national and regional public entities).
Over the past few years, Mizuho Research Institute has been strengthening its role as a bridge between the public and private sectors, advancing PPP/PFI projects in accordance with the nature of the operation and expanding the infrastructure PPP market, centered on projects for airports, seaports, and waterworks infrastructure.
Receipt of Order for Supporting the Conversion of the Osaka Municipal Subway to a Stock–Issuing Company
In fiscal 2017, Mizuho Research Institute received an order for practical implementation support for the first conversion in Japan of a municipal subway public corporation to a stock–issuing company. Mizuho Research Institute was selected because of the strength of its capabilities for providing strict supervision, comprehensive support, and other related services. As Japan enters an era of deterioration in the urban transportation infrastructure, demographic aging of the population, and a shrinking population, users of transportation services are expected to decline, and maintaining stable transportation services is becoming an issue that must be addressed.
The maintenance of arterial roadways (emergency transportation roadways), the main arteries that are vital to evacuations and first responders in a natural disaster, is key to ensuring that cities continue to function. Within this context, a variety of measures are under way to seismically reinforce 100% of the emergency transportation roadways and roadside structures in Tokyo.
Mizuho Bank and Mizuho Trust & Banking have long cooperated with Tokyo on various fronts, such as holding seminars. In January 2013, in a first for a financial institution, Mizuho Bank and Mizuho Trust & Banking signed an agreement to collaborate with Tokyo on the seismic reinforcement of emergency transportation roadways and roadside buildings, with the aim of making Tokyo more resilient to natural disasters.
The agreement specifically states that in order to seismically reinforce emergency roadways and roadside structures, Tokyo, Mizuho Bank, and Mizuho Trust & Banking will cooperate together to give the support necessary for consultation services and raising awareness so that seismic reinforcements can be made by the owners of roadside buildings.
Leverage its group strengths, Mizuho will provide consulting services for assisting with seismic reinforcement measures while addressing the concerns of its customers.