MUFG has invaluable experience from both sides of the Green Bond issuance process, having been both an issuer and underwriter. Given this, as well as our thorough knowledge of the Sustainable Financing market, we provide unrivalled expertise, strong support and innovative solutions to our clients.
Since 2016, MUFG has issued nine Green, Social and Sustainability Bonds, totalling the equivalent of US$3.4 billion across three markets.
MUFG's initial Green Bond Framework included the development, construction, operation or expansion of renewable energy projects, and was subsequently expanded to also include financing for Eligible Green Properties owned by J-REITs.
In 2019 MUFG published a Green, Social and Sustainability Bond Framework, which also included new social project categories. MUFG updated this Framework in May 2020 to include Use of Proceed categories targeting MUFG's efforts to address the COVID-19 pandemic. MUFG's inaugural Sustainability Bond in June 2020 was the first from Japan to channel funds specifically into the fight against the virus.
In September 2020, MUFG played leading roles in the first ever Green Sukuk, or Islamic bonds, by a company from the Kingdom of Saudi Arabia, Saudi Electricity Company, acting as Structuring Advisor and Joint-Lead Manager, having earlier in the year also structured the framework for the Kingdom of Thailand's first ever Sustainability bonds.
MUFG has been involved in the Sustainable Financing market since its inception, and from the start of 2018 we have underwritten 72 Green, Social and Sustainability bond issues in each of the US, European and Asian markets, totalling the equivalent of over US$40 billion.
MUFG is a leading provider of finance to sustainable projects, including renewable power generation, energy efficiency projects, hospitals and social housing. The Bank has significant experience as both advisor and lender to these sectors.
Green and Sustainability Linked Loans corporate facilities are a more recent but fast developing sustainable financing instrument in the market. MUFG has been active in this market working with and arranging a number of deals for our clients committed to sustainability.
MUFG aims to provide a cumulative total of 20 trillion yen in sustainable finance (including 8 trillion yen for environment) in 2019-2030 to help build a sustainable society and attain the SDGs through the provision of financial services to our clients. We are actively targeting seven SDGs identified as priorities that must be addressed.
MUFG participates in a variety of initiatives to drive the adoption of the best environmental and sustainability practices, including the United Nations Global Compact, United Nations Environment Program Finance Initiative and Principles for Responsible Investment. MUFG adopted the Equator Principles in 2005 in order to ensure that the projects we finance and advise on are developed in a socially responsible manner and help establish good environmental management practices. Additionally, we are a Steering Committee member of the Equator Principles Association.
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