Collaborating across Regions and Divisions for Our Clients and Society
Nomura stands committed to being Asia's global investment bank. Utilizing our global business platform, we are working in a variety of ways to connect our clients to the growth markets of Asia through collaboration that transcends both regions and business divisions. Below, we introduce the case of ADB Clean Energy Bonds as a highlight of these efforts. By arranging such financial instruments, we contribute to the sustainable economic growth of Asia.
Supporting the Enhancement of Social Infrastructure in Asia through Financial Instruments
It has been said that around $8 trillion will be required to enhance social infrastructure in the coming years to achieve further growth in Asia, which is a key driver of global economic growth. Nomura serves as a bridge between investors who wish to make a contribution to society through their investments and the financial needs of projects that aim to resolve the region's many social issues.
As an example, in January 2013 Nomura underwrote the Clean Energy Bonds issued by the Asian Development Bank (ADB) and distributed them to Japanese investors. Proceeds from these bonds are used to fund clean energy projects such as solar and wind power, which contributes to the sustainable economic development of Asia.
These bonds were structured and distributed through a collaborative effort by our Retail and Wholesale divisions (Investment Banking and Global Markets units), with our offices in London and Japan working together. Going forward, we will use similar collaboration transcending both regions and business divisions to develop and offer products and services that help resolve social issues and fulfill a variety of client needs.
Partnerships and Business Flow Transcending Regions and Business Divisions
Message from project members
The clean energy bonds issued together with the ADB yielded an excellent result. The proceeds help the ADB to diversify its funding sources and make an impactful contribution to sustainability.
Nomura International plc
Debt Capital Markets
This deal connected the ADB, which is supporting clean energy projects, with the broad range of Japanese investor needs through team-wide collaboration across different regions and business divisions.
There is increasing demand for contributing to society through investments, rather than donations or charitable fundraising. This product was developed to cultivate these needs.
Product Development and Planning Dept.
I received a great deal of positive feedback from clients. This included that it was easy to understand how the funds would be used and that they were happy to know their investment would make a difference. This reaffirmed for me the important role that we played in helping to connect investors with financing demand.
Yokohama Branch Office
I helped clients to understand the importance of the issuer's rating, the purpose of financing, and currency diversification, which provided a real sense of contributing to the betterment of society through investing.
Sendai Branch Office
Supporting Energy Projects with Green Energy Bonds
Anthony J. Jude
Chair, Energy Committee; Senior Advisor and Practice Leader (Energy)
Regional and Sustainable Development Department, Asian Development Bank
The Asian Development Bank has raised, through Nomura International plc, the equivalent of more than $400 million from its second sale of Clean Energy Bonds to Japanese retail investors in 2012/13. The Clean Energy Bonds provide a way for investors to direct funding to clean energy projects. The bonds will support ADB's ongoing renewable energy and energy efficiency projects in Asia and the Pacific.
In 2012, ADB approved $2.36 billion investment in clean energy projects up from $2.1 billion in 2011 and surpassing the 2013 target of $2 billion. About 41.3% of this amount is for energy efficiency projects with the remaining amount going to renewable energy projects. Renewable energy projects include hydro, solar, wind, biomass, and waste-to-energy projects. Energy efficiency projects consist of district heating retrofits, electric vehicles, loss reduction in transmission and distribution lines, and industrial energy efficiency improvements. The 2012 ADB clean energy projects are expected to add 1,255 MW of renewable energy capacity, to save annually 871 GWh of electricity and 71,938 TJ of fuel and to avoid 15.9 million tons of CO2.
ADB and Nomura will continue to promote and support sociallyresponsible investments in clean energy as they move forward to create a sustainable society free of poverty.