Nagano Prefecture Green Bond Launch by Daiwa Securities for Corporate Investors

The Launch of Green Bonds by Nagano Prefecture

Daiwa Securities Co., Ltd. has announced that it will facilitate the purchase of green bonds issued by Nagano Prefecture, with plans for issuance in October 2025. These bonds will be available at three branches located within Nagano Prefecture, as well as at all Daiwa Securities branches across Japan.

What are Green Bonds?

Green bonds are designed to fund projects that have positive environmental impacts. In this case, Nagano Prefecture aims to use the proceeds from these green bonds to support various sustainability efforts and climate change mitigation initiatives. The target investors for these bonds are corporate entities with a minimum investment requirement of 10 million yen.

A Step Towards Climate Action

Nagano Prefecture has been a pioneer in climate action, having declared a climate emergency in 2019. This makes it the first prefecture in Japan to do so. Furthermore, in 2021, the prefecture developed its Zero Carbon Strategy, setting an ambitious goal to reduce greenhouse gas emissions by 60% by the year 2030, compared to 2010 levels. The issuance of these green bonds is part of the prefecture's ongoing commitment to achieving this goal and addressing climate change impacts.

Investment Declaration

Investors who purchase these green bonds are invited to make an investment declaration, expressing their support for the projects funded by the bonds. The names of the firms that participate in this declaration will be publicly acknowledged on the Nagano Prefecture official website. This transparency promotes accountability and encourages more corporations to invest in sustainable projects.

Projects Supported by Green Bonds

The proceeds from the green bond issuance are earmarked for several specific projects:
1. Installation of Small Hydropower Facilities - These projects will harness renewable energy sources.
2. Vehicle Upgrade for Shinano Railway - Aiming for cleaner transportation options, this initiative supports emissions reduction.
3. Classroom Expansion at Suwa Vocational School - This project focuses on enhancing energy efficiency in educational environments.
4. Emergency Restoration of Agricultural Ponds - Aimed at climate change adaptation, this project will reinforce the agricultural infrastructure.

Framework and Reporting

A comprehensive framework has been established to guide the selection of projects funded by the green bonds, manage the allocated funds, and report on the outcomes. Detailed information and reports related to previous green bond issues by Nagano Prefecture are available on the prefecture's official website.

For more details about these green bonds and purchasing options, interested parties are encouraged to contact the Daiwa Securities branch directly.

Important Considerations for Investors

While investing in these green bonds can contribute to environmental sustainability, investors should remain aware of the associated risks and fees. Specific details about transaction fees, risks of price fluctuation, and conditions regarding bond issuance can be found in the literature provided by Daiwa Securities.

In conclusion, the green bond issuance by Nagano Prefecture signifies a commitment to a sustainable future and an opportunity for corporations to contribute positively to the environment while meeting their investment goals.