Clifford Chance advises on Vena Energy’s inaugural green project bond in Japan

Leading international law firm Clifford Chance has advised renewable energy company Vena Energy on the issuance of a JPY9.3 billion (approximately US$63.88 million) green project bond to global investment group CDPQ. The project bond will finance an operational and fully contracted solar project in Japan. The deal is Vena Energy’s first international project bond and CDPQ’s first financing relating to a renewable project located in Japan.

Located in Fukushima Prefecture, the 35 MW solar energy project can supply more than 7,000 Japanese households with renewable energy per year. Compared to conventional thermal generation, it has the potential to reduce up to 22,283 tonnes of greenhouse gas emissions yearly, while saving approximately 35,000,000 litres of water.

Tokyo Co-Managing Partner Leng-Fong Lai led on the deal and was supported by partner Yusuke Abe, senior associates Yurika Mikuriya and Suguru Kimura, and associates Keisuke Otsuka and Masaya Obayashi.

“As the renewable energy market and demand for green financing products continue to grow and evolve, access to alternative JPY funding from institutional investors will become increasingly important for project sponsors and we are pleased to have advised Vena Energy on this innovative project bond transaction,” said Leng-Fong.

Clifford Chance is a market leader in sustainable finance, having advised on landmark green bond issuances, including Lenovo’s inaugural offering of green bonds, the Hong Kong SAR Government’s US$2.5 billion multi-tranche green bonds issuance, the world’s largest retail green bond issuance, and Vena Energy on its inaugural and follow-on green bond issuance totalling US$500 million.