Tokyo Green Blue Bonds: Investment Opportunities for Corporations via Daiwa Securities

Daiwa Securities Co., based in Chiyoda, Tokyo, has announced that it will offer Tokyo's Green Blue Bonds, which are scheduled to be issued by the Tokyo Metropolitan Government in early October 2026. These bonds will be available for purchase at 38 branches and offices in Tokyo and across the nation, specifically targeting corporate investors.

Bond Details

The Green Blue Bonds are aimed exclusively at corporate entities, allowing an investment starting from 10 million yen. Investors will also have the opportunity to publicly declare their investment in the bonds, and the names of these corporate investors are expected to be published on the official Tokyo Metropolitan Government website later.

Investment Declaration: This declaration signifies a commitment to the purpose behind the projects these bonds are funding, as well as the intention to publicize their purchase of the bonds.

Since issuing its first Green Bonds in 2017, Tokyo has been a pioneer among local governments in Japan. The city continues to promote sustainability through various frameworks, including the Tokyo Social Bond and the Tokyo Resilience Bond. As this marks the tenth anniversary and the tenth issuance of the Tokyo Green Blue Bonds, the Tokyo Metropolitan Government aims to address multiple environmental challenges through a variety of initiatives.

Financing for Sustainable Development

The Tokyo Metropolitan Government is pursuing a vision of becoming a leading city in `Sustainable Resilience Finance` to create a sustainable and resilient society. Through these Green Blue Bonds, funds will be allocated to various environmentally focused projects aimed at combating climate change and promoting sustainable resource use.

Key Characteristics of the Bonds:

- Name: Tokyo Metropolitan Public Bond (Tokyo Green Blue Bond) No. 10
- Term: Five years
- Total Issue Amount: 10 billion yen with each bond priced at 10 million yen
- Eligible Investors: Corporations, foundations, educational institutions, medical and welfare corporations, municipalities, etc.
- Issuance Date: Scheduled for late October 2026
- Lead Underwriters: Daiwa Securities, Nomura Securities, Shinkin Securities, Okasan Securities
- Rating: Expected to achieve A+ from S&P
- Third-Party Evaluation: Compliance assessment with the Green Bond Principles 2025 by R&I

Allocation of Funds

The proceeds from these bonds are planned to be allocated towards a unique set of projects that will tackle various environmental issues:

- Green Projects: Addressing energy decarbonization, sustainable resource use, urban heat mitigation, retrofitting municipal facilities, and adopting energy-efficient technologies like LED lighting and ZEVs (Zero Emission Vehicles).
- Biodiversity Initiatives: Fostering a society where natural biodiversity can thrive, including enhancing green spaces around urban waterways.
- Improving Urban Environments: Aiming to ensure the health and safety of residents while improving the quality of urban living.
- Blue Projects: Activities that enhance marine environments and promote blue infrastructure, including the creation of seaweed beds at Tokyo Bay.

Examples of Fund Applications:

- Solar Energy Installations: Tokyo has significant potential for solar installations, and the government is leading the way to encourage public and corporate engagement in renewable energy projects.
- Waterfront Revitalization Projects: These projects aim to cleanse waterways and connect key natural sites, improving overall water quality while encouraging urban aesthetics and historical continuity.

For further details regarding the bonds and how to invest, corporate investors are encouraged to contact any Daiwa Securities office.

Additional Information

More information can be explored through the Tokyo Green Blue Bonds official homepage, which provides insights into the framework, external evaluations, and impact reports related to these bonds.

Visit the Tokyo Green Blue Bond homepage for comprehensive details on this groundbreaking financial initiative aimed at promoting sustainability and resilience in Tokyo.