Page 9 - MUFG Corporate Social Responsibility Report 2019

Spotlight
Sustainable Finance
Transitioning to a Low-Carbon Economy
In order to support the transition to a low-carbon economy, MUFG Americas serves businesses contributing to the mitigation of and adaptation to climate change— including renewable energy, improving energy efficiency, green building, and sustainable agriculture—through arranging sustainability-linked loans, project finance for renewable energy, and underwriting and distribution of green, social, and sustainability- linked bonds.
In 2020, MUFG Americas underwrote $750 million in green bonds for Avangrid, Inc. (NYSE: AGR)—a leading sustainable energy and infrastructure company that is part
of Spanish firm Iberdrola, which is the top wind producer in the world. This funding
is being used to invest in the development and construction of onshore and offshore wind farms, photovoltaic and concentrated solar power plants, as well as in electricity transmission and distribution networks. This is significant because Avangrid was the first domestic renewable energy producer and utility-holding company to publish a Green Bond Financing Framework on its website and obtain a second-party opinion regarding its green financing structure.
The issuance was oversubscribed and attracted a significant portion of dedicated
green investors as well as transitional investors. The financing framework is also in line with the Green Bond Principles (GBP) administered by the International Capital Market Association, with a view toward promoting consistency across financial markets. A second-party sustainability opinion anchored the best-in-class green bond structure for the transaction. The GBP are the internationally recognized voluntary issuance guidelines that promote transparency, disclosure, and reporting in the green bond market.
“Green bonds are a core part of the MUFG platform, and MUFG is at the forefront of green bond market development,” explained Todd Gray, managing director, Sustainable Finance Capital Markets, MUFG Securities Americas. Helping partners and society
build infrastructure for a low-carbon future is an important component of our CSR commitments. It is reflected in both the projects we fund and in our global green rankings, driving progress on the goal announced by MUFG Americas to reach ¥20 trillion in sustainable finance by 2030.
In November 2019, MUFG Americas financed the development, construction, and operations for three wind assets and one solar asset in Chile with Mainstream Renewable Power. The deal will help support Chile’s renewable energy target of supplying 20% of the country’s electricity from renewable sources by 2025. The respective projects will deliver power under three 20-year power purchase agreements with 25 local distribution companies.
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