DBJ First to Issue Sustainability Bond in Japan

Image by 401(K) 2012 Some Rights Reserved.

Development Bank of Japan (DBJ) issued its inaugural sustainability bond on October 21, 2015. The total issuance amount was 300 million euros. Sustainability bonds are a type of socially responsible investment (SRI) bond investing only into projects with a high value for the environment and society.

SRI bonds have been rapidly growing in issuance amounts, mainly in Europe and America. DBJ is the first issuer of sustainability bonds in Japan. The assets to receive this financing include companies rated C or higher in the DBJ Environmentally Rated Loan Program as well as companies granted three stars or more by the DBJ Green Building Certification Program. Such companies include automobile manufacturers ranked A in the environmental loan program and real estate companies with five stars in the DBJ Green Building Certification.

The issued bonds were sold to banks, asset managers and SRI investors such as IKEA, a multinational furniture retailer. DBJ will continue to issue SRI bonds and provide financial support to projects with high environmental and social consciousness.