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Environment

MUFG floats Japan's first green bonds in Aussie dollars

$337m issuance to fund low-carbon buildings and renewables

A solar array farm in Queensland, Australia. MUFG will use proceeds of the bond sale to finance green projects.   © Reuters

TOKYO -- Mitsubishi UFJ Financial Group has become the first Japanese financial institution to issue green bonds denominated in Australian dollars, hoping to attract the Pacific country's more environmentally conscious investors.

MUFG issued a total of AU$500 million ($337 million) in fixed- and floating-rate bonds. The maturity was set at five years.

The issuance was oversubscribed by almost two times, and most of the bonds were purchased by Australian institutional investors.

MUFG plans to apply the proceeds toward Earth-friendly businesses, like buildings with low carbon footprints and renewable energy projects.

The financial group is also considering issuing foreign-currency-denominated social bonds by year-end so that it can invest in health care, education and disaster relief. It seeks to obtain an environmental, social and governance rating from ratings agency Sustainalytics.

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