Japan Launches First Project Bond for Grid Battery Storage Development
Mizuho Securities, CHC Japan, and ORIX Bank have issued a ¥10 billion project bond for a grid-scale battery storage facility in Niigata. This marks Japan's inaugural project bond aimed at financing a battery energy storage system, highlighting a significant advancement in energy-transition financing.
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The ¥10 billion project bond structured by Mizuho Securities, CHC Japan, and ORIX Bank will fund the 49 MW/231 MWh Niigata Yamaya BESS in Ojiya City, with operations commencing in 2029. Tokyo Gas will oversee the facility under a 20-year offtake agreement.
This bond is significant as it was secured at the construction start, addressing the need for early capital recycling amid lengthy grid interconnection processes. The structure aims to attract both equity and bond investors, especially amid interest rate volatility.
The bond received an 'A-' credit rating from R&I. The project is poised to enhance grid stability and facilitate renewable energy integration in Japan's evolving energy landscape.
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