Japan’s electric utilities may be turning to the dollar green bond market to finance their re-embrace of nuclear power.
Hokkaido Electric Power Company (HOKKEL) is leading the charge. In a first-of-its-kind move, HOKKEL issued a 5-year, $500 million green bond to support the restart of nuclear generation at its Tomari plant. The revival could displace up to 79% of the thermal power generated in the region.
The new deal may herald a flood of international green capital into Japan’s utility sector as issuers look beyond domestic markets for support. While the pricing of the HOKKEL issuance does not point to a clear “greenium”, the book coverage ratio was strong, indicating robust demand.
