#Japan #Hiroshima #green bond #Daiwa Securities

Hiroshima Prefecture's Green Bond Initiative

Hiroshima Prefecture, led by Governor Mika Yokota, is set to issue its Green Bond in November 2026. This initiative will allow corporate investors to purchase these bonds through Daiwa Securities' local branches in Hiroshima and across the nation. By investing in these Green Bonds, corporations can align with the prefecture's environmental goals while showcasing their commitment to sustainability.

Bond Details and Investment Information

This Green Bond, which is the fourth issuance since its inception, is expected to raise approximately 5 billion yen. Corporations can make purchases starting from 10 million yen. The bonds will not only serve as a financial instrument but also as a platform for investors to publicly support environmental initiatives. Those who proclaim their investment will have their names featured on Hiroshima Prefecture's website, thereby emphasizing their commitment to eco-friendly projects.

What Are Green Bonds?

Green Bonds are fixed-income financial instruments designed to raise funds specifically for projects that have positive environmental benefits. In this case, Hiroshima Prefecture aims to utilize the funds for various projects aimed at reducing energy consumption and enhancing disaster prevention through infrastructural improvements, including the renovation of public facilities and flood mitigation measures.

Strategic Goals for 2050

As part of its strategy to achieve a net-zero carbon footprint by 2050, Hiroshima Prefecture is actively pursuing environmental sustainability through this bond issuance. The proceeds from the Green Bonds will support multiple eco-friendly projects, including:

• - Forest Management: Improving the maintenance of forest roads to support sustainable forestry and conserve marine environments.
• - Energy Efficiency: Updating lighting in public facilities to LED systems and enhancing traffic signaling systems.
• - Clean Transport: Electrifying government vehicles to reduce carbon emissions.
• - Renewable Energy Initiatives: Subsidizing the installation of small-scale hydroelectric plants and solar power systems.
• - Disaster Risk Reduction: Upgrading rivers and land features to mitigate flooding and landslides.

This fiscal year, the prefecture has a significant focus on funding projects that enhance energy efficiency and disaster preparedness while contributing to the state’s climate change adaptation efforts.

Benefits for Investors

Investors in Hiroshima’s Green Bonds will receive various benefits, such as:

• - Promotion of Environmental Activities: Companies that invest will be provided with opportunities to engage in environmental initiatives, including waiving fees for booth exhibitions at environmental events.
• - Visibility in Environmental Reports: Investors will be recognized in official documentation related to environmental efforts by Hiroshima Prefecture, enhancing their profile as environmentally conscious corporations.

Furthermore, the prefecture plans to share an impact report detailing the environmental improvements and projects funded by the Green Bonds, ensuring transparency and accountability.

Conclusion

The Hiroshima Green Bond is a promising opportunity for corporations looking to invest in environmental sustainability while benefiting from investment recognition. Interested investors can inquire at Daiwa Securities for more details about purchasing the bonds and participation in this crucial environmental effort.

For further details regarding the bond offering and related activities, please visit the Daiwa Securities local branch or Hiroshima Prefecture's official website.