Sumitomo Mitsui Banking Corporation has announced that it determined the issuance of green bonds valued US$500 million on October 14, 2015.
The maturity of the bonds is 5 years and have a coupon of 2.45 %.
Green bonds are notes that limit the usage of net proceeds to the financing of projects with environmental benefits such as solar power generation.
Sumitomo Mitsui Banking Corporation said in a press release that these days, investors are more focused on companies that contribute positively to both the environment and society due to the recent global trend of “socially responsible investing.”
Through this issuance of green bonds, the company expects to obtain funding from investors with a strong interest in the environment and society in order to finance environment-related businesses where further growth is expected.
The company also said that it has been engaged in environmental businesses such as the Environmental Assessment Loan Program and project finance deals including renewable energy projects across the globe.