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MUFG Green Bond Reporting (Issue Date 1-Oct-19)

Allocation of funds (as of the end of March 2020)

The aggregate amount of loans outstanding as of March 31, 2020 to Eligible Green Projects that were funded by the net proceeds from the sale of the MUFG Green Bonds issued in Oct 2019 was US$79 million (for a total of 3 projects). By type of electricity generation project, solar photovoltaic power, and wind power (onshore) accounted for 62%,  and 38%, respectively. In terms of geographical distribution, Australia represented the largest portion, followed by Malaysia. (See the charts below for details for your reference.) The foregoing amounts are U.S. dollar equivalent amounts calculated based on the exchange rate between the U.S. dollar and other currencies and as of March 31, 2020.
Allocation of funds by type of electricity generation project
Allocation of funds by geographical distribution

Environmental Impacts (As of the end of March 2020)

The annual energy generation from Eligible Green Projects to which proceeds from the MUFG Green Bonds issued in Oct 2019 is 721 million kWh per year with avoided annual CO2 emissions of 0.36 million tons. MUFG bank's estimated proportion of the CO2 avoidance is 0.09 million tons, which can be obtained as an aggregate amount of multiplying MUFG Bank's share of financing for each eligible green project by CO2 emissions avoided of the project. The annual energy production is calculated based on the below formula with the average capacity factor published by the International Renewable Energy Agency.

 

Annual energy generation (kWh) = capacity of energy generation (kW) × Hours of operation × Average capacity factor (%)

 

The estimated CO2 avoidance is calculated based on the average emission factor published by the International Finance Corporation as below.

 

CO2 emission reductions= Annual energy production (kWh) × Average emission factor (gCO2 / kWh) 

Category Sub category Annual energy generation
(kWh)		 Annual CO2 emissions avoided
(t-CO2)
Renewable Energy Solar photovoltaic power 184,485,600 92,981
(MUFG Bank's proportion
46,888)
Wind (Onshore) 536,112,000 270,200
(MUFG Bank's proportion
38,600)
Total 720,597,600 363,181
(MUFG Bank's proportion
85,488)

Disclosure Policy (conducted in June 2020)

MUFG has received a report on the allocation of amounts equivalent to the net proceeds from the sale of its Green Bond issued in Oct 2019 from Sustainalytics in the Netherlands, and the CFO of MUFG has provided management assertions with respect to such allocation.

Warradarge Wind Farm

MUFG Bank signed a loan agreement of up to AUD386.1 million to finance the Warradarge Wind Farm project with a syndicate of 7 commercial lenders, currently under construction in Western Australia.  The project is owned by Bright Energy Investments which is a joint venture between equity partners Synergy (19.9%), Dutch Infrastructure Fund (40.05%) and Cbus (40.05%).  The plant will commence commercial operation in late 2020 with a total output of 180MW the equivalent of the average annual electricity needs of 148,500 West Australian homes.
Warradarge Wind Farm
Warradarge Wind Farm
(As of June 2020) 
Green, Social, and Sustainability Bonds

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