Goldman Sachs plans $1bn green energy bonds for Japan

25 May 2015 (Last Updated May 25th, 2015 18:30)

US-based investment firm Goldman Sachs Group intends to raise $1bn through bond issue for investment in the Japanese renewable energy sector within the next few years.

US-based investment firm Goldman Sachs Group intends to raise $1bn through bond issue for investment in the Japanese renewable energy sector within the next few years.

The investment is in line with the group’s 2012 plan to invest approximately $40bn on green energy developments over the next ten years.

People familiar with the matter told Reuters that the Japan Renewable Project Bond Trust is being issued as a structure for offering institutional investors the scope to invest in investment grade-rated securitised renewable energy bonds.

"Over the past year or two, I do think things are moving much more faster than in the past ten years."

The initiative is expected to support solar power developments at first and will be spent for other renewable projects gradually as they come up.

The Japanese Government had announced preferential tariffs in 2012 to promote development of renewable energy after the Fukushima nuclear disaster in 2011. This had prompted a lot of investors to support solar projects at the time.

Besides being an active investor, Goldman Sachs had also assisted in arranging investor funding and raised JPY9bn ($74m) for around 12 solar projects since late 2013 by selling revenue bonds.

Earlier, Goldman Sachs’ infrastructure and structured financing vice-president Toru Inoue had said: "Over the past year or two, I do think things are moving much more faster than in the past ten years."

The firm had set up Japan Renewable Energy In August 2012, which develops and operates renewable energy platforms in the Asian country.