Environment, Energy and Infrastructure
Environment and Energy
Initiatives toward protecting the global environment for attaining sustainable development of economies and societies must be undertaken by the entire world. After securing safety in each country, the issue to address becomes providing for a stable and economically viable supply of energy.
Mizuho believes that, through its main business of providing financial products and services, it must promote concern for the environment throughout society and is promoting initiatives in growth fields related to the environment and energy where Japanese companies can demonstrate their competitiveness, drawing on their high levels of technology.
Drawing on its knowledge as a global financial group, Mizuho 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 MHBK
Finance for a solar photovoltaic (PV) power plant project located in Jordan which was arranged by MHBK was awarded Environmental Finance of the Year (Solar Category) from Environmental Finance in March 2016. 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
Initiatives for Smart City Project
Mizuho's goal is to support growth strategies of Japanese industries and promote the development of high–quality, sustainable infrastructure from a financial standpoint using its smart city project management expertise with Japanese environmental technology.
For more details, please access "Initiatives for Framework".
- Smart City Projects with Mizuho's Involvement
Surveys and Research into Environmental and Energy Policy, Consulting Services for Environmental Management
In the area of environmental issues, Mizuho has developed channels with specialist institutions at home and overseas, and works to gather expert knowledge and the latest information. Making the most of this plentiful accumulated knowledge, it offers companies management advice and consulting on environmental problems.
MHIR has long been involved in contract research and consulting related to the environment and energy in partnership with government agencies, related research institutes, and cutting–edge environmental companies. The company has compiled an extensive track record and a wealth of expertise and information in various areas, including environment and energy technology evaluation and CO2 emissions clarification. Leveraging this experience, MHIR helps customers deal with issues related to the environment and develop corporate and business strategies that take the environment into account.
For more details, please access "Research and Consulting Services".
A safe, sustainable, and resilient infrastructure is the base for economic and social development. Mizuho is working to make use of its sophisticated professional capabilities in the fields of project finance and private finance initiative and public–private partnership (PFI and PPP) arrangements and is collaborating with local governments and their organizations to actively supply funding and consulting services.
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, Mizuho can now offer project finance debt investments to a broader range of institutional investors.
Going forward, Mizuho 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 in Asia and implemented initiatives related to an electric power generating plant powered by waste incineration.
Infrastructure Maintenance through SRI–Related Funds
MHSC 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, MHBK 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. MHBK 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, MHRI 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, MHRI 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.
Obtained a mandate to provide advisory services for Kumamoto Airport which is being converted to a concession (privatization)
In fiscal 2016, MHRI received the mandate to provide advisory services for the privatization of the concession for Kumamoto Airport. In rebuilding the airport, which had been damaged by a series of earthquakes in April 2016, MHRI played an advisory role in drafting the reconstruction plan and designing the concession scheme. The project served as a symbol of Kumamoto's recovery from the disaster and contributed to the region's economic recovery.
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.
MHBK and MHTB have long cooperated with Tokyo on various fronts, such as holding seminars. In January 2013, in a first for a financial institution, MHBK and MHTB 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, MHBK, and MHTB 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.