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Green finance

Environment–related projects

Leveraging its accumulated know–how in project finance, Mizuho Bank is proactively providing financing for such renewable energy projects as those involving solar power, solar thermal, and wind power generation. Regarding large–scale development projects, Mizuho Bank is working to ensure due consideration for the environment and society in accordance with the "Equator Principles."

Environment–related funding

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Record of project finance arrangements in the renewable energy department (Mizuho Bank)
  FY2013 FY2014 FY2015 FY2016 FY2017
Value of arrangements
(US$ millions)
1,432 1,907 1,560 1,607 2,417

Source: Bloomberg New Energy Finance

Record of environment–related project finance arrangements (Mizuho Bank)

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(Green finance outstanding as of March 31, 2018: JPY393.3 billion

Finance for environmentally–conscious companies

Mizuho Bank offers "Mizuho ESG–Assist(Eco) *" and "Mizuho ESG Private Placement(Eco) *" environmentally conscious financing products to respond to the working capital and investment capital needs of companies that are practicing environmentally conscious management or proactively addressing environmental problems, and to companies investing in facilities to improve the environment.

In March 2011, under our "Mizuho Eco Grade**" system, we began to use our own standards to evaluate the status of environmentally conscious management at customer companies and began to offer "Mizuho ESG–Assist (Eco) Plus*" and "Mizuho ESG Private Placement (Eco) Plus*" with terms and conditions based on "Mizuho Eco Grade" results.

  • *Product name was changed on December 18, 2018.
  • **The "Mizuho Eco Grade" system developed by Mizuho Information & Research Institute to evaluate the environmentally conscious management efforts of customers is unique to Mizuho. It is characterized by its evaluation of a company's environmental capabilities in terms of both risks and opportunities, and by its triennial follow–ups for evaluating ongoing environmental initiatives. This serves as the basis upon which we offer companies advantageous capital procurement and support for their environmentally conscious management efforts.
Workflow for "Mizuho Eco Grade" Assessments
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Offering loans that fund initiatives aimed at preventing global warming and promoting energy saving and qualify for interest subsidies

Mizuho Bank provides loans that qualify for various interest subsidy programs. These include the Ministry of the Environment's "Interest Subsidies for Promoting Reduction of Environmental Risk," and "Interest Subsidies for Financing Environmental Risk Research." Other such subsidies are also provided under the "Subsidies for Promoting the Introduction of Specified Equipment for Improving Efficiency of Energy Usage" of the Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry. These programs provide interest subsidies from the national government and other sources for environmentally conscious capital investment loans meeting certain requirements. Eligible loans include capital investment in facilities that prevent global warming, energy conservation, and other investments that have environmental protection objectives, including research on the environmental impact of projects. In addition, when providing finance for projects under the "Interest Subsidies for Financing Environment Risk Research" program, Mizuho Bank conducts environmental risk due diligence.

Mizuho Bank offers loans qualifying for similar interest subsidy programs of the Ministry of the Environment and the Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry, thus helping companies that are taking initiatives to prevent global warming and promote energy conservation.

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  End of Mar. 2016 End of Mar. 2017 End of Mar. 2018
Number Balance
(Millions of JPY)
Number Balance
(Millions of JPY)
Number Balance
(Millions of JPY)
Finance for environmentally–conscious companies* 482 74,155 309 57,810 237 38,064
  • *Including "Mizuho ESG Private Placement (Eco)" and, "Mizuho ESG Private Placement (Eco) Plus"

Initiatives in the area of "Green Loans"

Uses of "Green Loans" are limited to business activities that show due regard for the environment. As the flow of funds into ESG (environment, society, and governance) investments has expanded, in March 31, 2018, the Loan Market Association and the Asia–Pacific Loan Market Association jointly prepared and issued their Green Loan Principles (hereinafter the Principles), which are the rules for making loans and specify that the funds must be used in the environment–related fields.

On August 24, 2018, Mizuho Bank signed its first green loan contract based on these Principles. Going forward also, Mizuho will provide proactive support for companies that are responding to ESG issues through the provision of green loans.

Mizuho signs Green Loan Agreement

Providing of new fund–raising methods and investment products aimed at wider use of renewable energy sources

To assist in the development of a sustainable society, we provide various types of support to expand the use of renewable energy. In June 2016, the Takara Leben Infrastructure Fund, which invests mainly in photovoltaic facilities, became the first fund to be listed on the Tokyo Stock Exchange's Infrastructure Fund Market. At the time, we provided our full support with Mizuho Securities acting as the listing lead manager, Mizuho Trust & Banking performing the role of an administrator of the investors' registry, and Mizuho Bank serving as the lead in arranging the financing. Entities across the Mizuho group have collaborated to support IPOs and new equity issues in the Infrastructure Fund Market, as well as support funding related to renewables and market investment products throughout the world.

Environmentally–related loans to individual customers

To support individuals' environmental protection efforts, Mizuho Bank offers loans with lower interest rates that are available to customers who want to remodel their existing home, or build or purchase a new home that is more environmentally–friendly, such as employing solar power generation or all–electric systems. With this in mind, we are also implementing a system under which we will purchase 1.4 tons of domestic CO2 emissions credits for each eligible loan transaction and donate them to the national government.

Under this initiative, Mizuho Bank loans benefit the environment not only through the environmentally–friendly homes purchased using the loans. This initiative also contributes to the proactive environmental efforts of Japanese companies by promoting the J–Credit Scheme (formerly the Domestic Credit Scheme) as well as the attainment of Japan's CO2 emissions reduction targets.

  • *The Domestic Credit Scheme and the Offset Credit (J–VER; Japan's verified emissions reduction) Scheme was integrated in 2013.

Balance of environment–related loans for individuals

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  End of Mar. 2016 End of Mar. 2017 End of Mar. 2018
Number Balance
(Millions of JPY)
Number Balance
(Millions of JPY)
Number Balance
(Millions of JPY)
Environment–related loans for individuals 2,206 39,862 1,967 35,077 1,804 31,987
Of which All–electric Housing Loans 1,854 39,447 1,688 34,793 1,596 31,801
Of which "MHBK Remodeling Loans" through remodeling an existing home to benefit the environment 99 135 88 112 81 96
Of which "MHBK New Car Loans" for purchasing of an environmentally friendly car 253 280 191 172 127 90