Two Japanese banks leading renewable energy lending in first half of 2017
Unit 1 of Sarulla Geothermal Power Plant, North Sumatra/ Indonesia (source: Ormat Technologies)
Alexander Richter
7 Jul 2017
Japanese banks continue their support for renewable energy development, among others to geothermal projects, with Mitsubishi UFJ and Mizuho Financial Group leading project finance lending in the first half of 2017, according to Bloomberg New Energy Finance.
According to latest data released by Bloomberg New Energy Finance, the two Japanese banks Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. “are in a neck-and-neck race to be the biggest lead arrangers of lending to the renewable energy industry in the first half of the year, highlighting the more active financing role for Japanese banks in clean energy.”
While Mitsubishi UFJ currently has signed more loans to clean energy developers with about $1.697 billion, Mizuho has wrote about $1.662 billionin project finance loans.
The Japanese megabanks have been expanding with an ever increasing interest in renewables in Japan, but also internationally. The reasons are many, but they are driven mostly by the good margins to be gained compared to other sectors.
Mitsubishi UFJ has been focus on lending to solar, wind and geothermal projects in the first half of year.
How far both banks will continue to bank roll geothermal projects will have to be seen, but it is clear that there is a will to finance geothermal projects, e.g. in Indonesia. We have reported on financing for geothermal projects by Japanese banks before.
Source: The Japan News
