The Development Bank of Japan Inc. (DBJ) has long been addressing environmental challenges in Japan through its various environmental projects. This time, in cooperation with the Japan Wind Development Co. Ltd (JWD), DBJ has established the Japan Wind Development Joint Fund.
This private joint-investment fund is the first Japanese Fund to adopt the capital recycling model for wind power project by which wind turbines owned and operated by JWD and its affiliates will be acquired and jointly managed. This ¥35Billion fund will be financed with equity investments by JWD and DBJ in equal amounts, and with a loan which is to be provided wholly by DBJ.
To date, 100 wind turbines from 14 wind farms with a total generation capacity of over 154,850 KW have been transferred to the Fund. Currently, the fund is planning to market its debts to local banks and private institutional investors seeking socially-responsible investment opportunities. To increase its transparency and creditworthiness, the Fund has acquired a BBB rating from the Rating and Investment Information, Inc., a Japanese credit rating agency. DBJ believes that through its successful adoption, the capital recycling model, will serve as an archetype for the market.
As an institution leading the way in renewable energy (RE) initiatives in the country, DBJ will always be ready to provide and accelerate financial support for RE investment projects, and, thus, will play a significant role in addressing society’s overall environmental challenges.
DBJ’s “Japan Wind Development Joint Fund” won the 2017 ADFIAP Outstanding Development Project Awards under the Environmental Category.