Eco-business / Social Venture

October 16, 2008


JBIC Issues New Fiscal Investment and Loan Program (FILP) Agency bonds To Support Global Environment

Keywords: Eco-business / Social Venture Non-manufacturing industry 

Japan Bank for International Cooperation (JBIC) issued, on June 27 2008, 5-year FILP Agency bonds (non-government guaranteed bonds; called "JBIC Environmental Support Bond") for 20 billion yen (about U.S.$190 million), based on the concept of contributing to the global environment. The proceeds will be used to finance projects aimed at environmental conservation and improvement in the International Financial Operations (IFOs) of JBIC.

The new bond concept incorporates "bond issuance" and "carbon credit trading" into one scheme to provide an opportunity for the issuer, institutional investors and the underwriter to contribute to global environment through fundraising/utilization, bond investment and carbon credit trading.

The underwriter, Mitsubishi UFJ Securities, pays a commission to a separately established non-profit intermediary corporation that will purchase carbon credits and write them off. Upon request, part of the interest can be exchanged for carbon credits for eventual write-off.

The "Carbon Credit Trading Platform" jointly operated by Japan Institute for Overseas Investment (JOI) and JBIC will be used for acquiring carbon credits. Investors may also request to have access to this platform through the underwriter.
- Aid Giant JBIC Implements New Environmental Guidelines (Related JFS article)
- JBIC to Finance Wind Power Project in Bulgaria (Related JFS article)
- Japan Finances World's First CDM Railway Project under the Kyoto Protocol (Related JFS article)

Posted: 2008/10/16 01:06:42 AM