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Leveraging Our Financing Function Leveraging Our Financing Function

Leveraging Our Financing Function

MUFG is contributing to the development of projects that do not use fossil resources and the dissemination of renewable energy by leveraging its extensive track record and know-how, in addition to its global network, and engaging in initiatives through its core business, such as project finance.

Promotion and Expansion of Renewable Energies

Renewable Energy Projects Finance

The introduction of renewable energy as a clean energy source that replaces fossil fuels and the shift away from the use of fossil resources are advancing in countries and regions around the world.
Drawing on its solid track record, abundant know-how and extensive network at home and abroad, MUFG is acting as project finance arranger and lender for solar, wind and geothermal power generation projects. In these ways, we serve as a driving force behind the dissemination of renewable energy around the world. Thanks to these efforts, in 2019 we were able to secure second place in the global ranking of financial institutions serving as lead arrangers in financing for renewable energy projects. We have seized this position for a second consecutive year.

 

The following shows the CO2 reduction effect of project finance for renewable energy projects by all assets as of the end of each fiscal year.(This is the annual CO2 reduction effect calculated from the amount of electricity generated, facility utilization rate, and emission factors for renewable energy projects with outstanding credit at the end of each fiscal year. This value is after taking into account MUFG's contribution to credit.)

Establishment of a Solar Fund (Ecology Trust)

The Trust Bank has been offering solar funds every year since FY 2018 as an investment product.

The project has been well received by investors, who say that they now have a new investment option for solar power generation that produces a stable profit.

The Trust Bank has been actively investing in renewable energy with investment totaling 29 power plants, 288 MW, and 123 billion yen (excluding already established funds). The Trust Bank is also contributing to regional revitalization, by focusing on projects closely related to local businesses, governments, and residents.

Cumulative amount of the fund
17.9 billion yen
(cumulative since FY 2018)
Total amount of power generation
Electric energy usage of
13,000households

Execution of Green Loans and Green Private Placement Bonds

The Bank provides green loans and green private placement bonds as a means for customers to raise funds to be used for green projects.

Support Environmentally Friendly Management

MUFG Bank offers numerous loan products for the environmental and energy industry sector that make use of national government support systems to reduce the interest rate burden for customers. We also offer environmental management-oriented customers high-quality consulting expertise, supporting efforts to raise funds at reduced interest rates.
Energy Conservation Support Loan (With 1% Interest Subsidy)
This product makes use of the Ministry of Economy, Trade and Industry's subsidy program for the promotion of upgrading facilities to improve energy efficiency. Under this program, the borrower can receive a maximum 1% subsidy for up to 10 years for the interest on loans made for the installation of energy-efficient equipment.
Environmental Accounting-CO2 Reductions and Economic Effect through Financing
Please refer to ESG Data(PDF / 344KB).

Products and Services for Reducing Environmental Impacts

MUFG is working behind the scenes to reduce environmental impacts by providing products and services for customers who aim to be environmentally conscious.
Evaluation Methodology and Loan-Related Product that Aligned with ESG Activities
"ESG Evaluation loans for J-REIT"
The Bank offers the loan product, ESG Evaluation loans for J-REIT using MUFG ESG Evaluation for J-REIT supported by JCR(note) which is provided by Mitsubishi UFJ Research and Consulting. The entire loan or portions directed towards J-REITs which have received the top three ratings of MURC's ESG evaluation may be preferentially allocated for the usage of the proceeds of the MUFG Green Bonds only if loans to Eligible Green Projects. Through the loan products related to ESG, we are not only able to support the customers' funding methods, but also support customers' business challenges and offer solutions as well.
  1. Mitsubishi UFJ Research and Consulting offers evaluation and ratings to J-REITs which aspire and conduct ESG management.
    The ESG evaluation methodology provided by MURC supports J-REITs in recognizing its current conditions and challenges regarding ESG activities.

Green Bonds Underwriting

MUMSS is a leading Green Bonds underwriter since the inception of the market and top-ranked house in terms of volume and number of transactions where it acted as Structuring Agent(note1). It has joined the Climate Bonds Partners Programme of Climate Bonds Initiative(note2) since 2019. Together with Climate Bonds Initiative, it aims to make a contribution to growing the Green Bonds market.
  1. A company that supports the issuance of green bonds through the development of a green bond framework and other means.
  2. The Climate Bonds Initiative is an international organization based in London that works to promote investment in the projects and assets needed for a rapid transition to a low-carbon, climate durable economy. The Climate Bonds Parteners Programme supports investor and stakeholder activities and educational projects to grow sustainable green bond markets that contribute to climate change response and low carbon investment.
●Cumulative underwriting of public yen-denominated green bonds (April 1, 2016 to March 31, 2021)
Rank Underwriter Number of projects Volume
(hundred million yen)
Share
(%)
1 Mitsubishi UFJ Morgan Stanley Securities 94 4,146.9 24.5
2 Mizuho Securities 96
3,720.7
22.0
3 SMBC Nikko Securities 98
3,204.3
18.9
4 Nomura Securities 73
3,003.1
17.7
5 Daiwa Securities 60
2,298.9
13.6
Source: Data from Deal Watch by Thomson Reuters and compiled by Mitsubishi UFJ Morgan Stanley
(As of December 2021)