Advisory and Financing
Nomura Group believes that the social mission of the financial services sector is to contribute to economic growth and sustainable social development by facilitating the appropriate flow of funds in the capital markets through products and services that meet the needs of customers. In addition, to fulfill our responsibility as a company that operates globally, we offer financial services that contribute to addressing climate change and social issues and promote initiatives aimed at achieving the Sustainable Development Goals (SDGs).
Highlights
Sustainable finance
supported in FY2022/23
Nomura targets to deploy $125 billion in sustainable financing over the next 5 years until March 2026.
$25.2 billion
(Cumulative total of approximately US $46.6 billion / FY2022/2023)
Addressing Environmental and Social Issues through Financing Support
Through underwriting SDG bonds, Nomura serves as a bridge between investors who want to contribute to society and projects with capital needs that aim to resolve social issues such as climate change. Nomura Group is engaged in sustainable finance in Japan and overseas, and is contributing to the achievement of SDGs using capital markets.
In 2017, Nomura Securities established a team dedicated to working on ESG bonds in the Debt Capital Markets Dept., and in 2018 the team got stronger by establishing a global structure. In 2022, we established the Sustainable Finance Department to further strengthen initiatives for sustainability-related businesses. Utilizing a platform built in Europe, the Americas, Asia, and around the world, it delivers optimal solutions overseas for ESG bond issuance.
Strengthening Sustainability-Related Advisory and Financing Services
Nomura will provide solutions in sustainability-related fields in light of growing demand for sustainable products and social needs. We will continue to invest in growth areas and help our clients address their new needs.
Providing M&A Advisory Services by Nomura Greentech
In April 2020, Nomura Group completed the acquisition of Greentech Capital Advisors, a leading boutique investment banking firm focused on supporting clients across sustainable technology and infrastructure. Under the rebranded Nomura Greentech, we will connect companies working to create sustainable technologies with investors and clients across different geographies to help them incorporate innovation into energy, transportation, food, water and waste infrastructure systems.
In April 2022, we established Greentech Industrials & Infrastructure (GII), a team of approximately 150 bankers, through realigning our existing energy, industrials and sustainability focused sectors, and hiring in focus areas. We are strengthening and promoting M&A advisory services in the sustainability field on a global basis, including support for decarbonization through the restructuring of our clients' business portfolios.
Energy-Related Infrastructure Finance
Our Infrastructure & Power Finance (IPF) business has a dedicated New York-based team focused on sourcing, structuring, executing and distributing financing for green projects and other assets globally. Since its inception in 2017, the team has underwritten more than US$15 billion of infrastructure and sustainable assets, with more than half of the portfolio in solar and other renewables.
Case Study
IPF supported the acquisition of a 400 MW operational utility-scale solar portfolio by Enfinity Global. The company is a leading renewable energy operator and this acquisition marked a significant milestone in its expansion in the US, following growth in Japan and Europe. IPF underwrote the nearly US$300 million facility and distributed it to a variety of lenders such as Commonwealth Bank of Australia, Fifth Third Bank and Bayerische Landesbank. This transaction expanded upon a strong relationship initially established in Japan as Enfinity Global has continued to grow as a key global developer.
Working to Advance Sustainable Finance
Aiming to advance sustainable finance, we carry out a variety of initiatives, including promoting the establishment of international standards and holding seminars on the topic.
Our team of professionals collaborates across divisions and geographic borders to gather knowledge, monitor market and regulatory trends and expand our lineup of sustainable financial products and services.Nomura participates in the International Capital Markets Association (ICMA) Climate Transition Finance Working Group and the Social Bond Sustainability Link Bond Working Group. As a member of the Sustainable Bond Market Advisory Group of the London Stock Exchange, Government, and associations related to sustainable finance such as Japan Securities Dealers Association, we are also actively involved in rulemaking in the area of sustainable finance and the revitalization of the sustainable finance sector as a whole.
Lead Sponsor of ICMA's Annual Meeting on Guidelines
Nomura was a lead sponsor of the International Capital Market Association's (ICMA) Annual Conference of the Principles held in Singapore in June 2023. The Ministry of Economy, Trade and Industry gave a keynote speech on GX economic transition bonds (Climate Transition Bonds) and played a role in enhancing Japan's presence in sustainable finance.
Nomura Chairing the Working Group on Disclosure and Evaluation of Climate-related Opportunities
Nomura is a member of the GX League* established by the Ministry of Economy, Trade and Industry in February 2022. The Working Group on Disclosure and Evaluation of Climate-related Opportunities, formed in September 2022 as one of the main initiatives of the GX League, spent approximately six months discussing how to reflect the reductions in greenhouse gas emissions resulting from the products and services companies provide the market into their corporate valuations. As the chair of this working group, Nomura Holdings led these discussions among the member companies, and in March 2023 the working group released the Basic Guidelines for Disclosure and Evaluation of Climate-related Opportunities. In FY2023/24, we continue to lead this working group of about 90 participating companies as a lead company, aiming to establish an appropriate framework to evaluate opportunities related to climate change by companies, including avoided emissions, in order to achieve both economic growth and a decarbonized society.
Established by the Ministry of Economy, Trade and Industry as a forum for companies proactively working on GX (Green Transformation) to collaborate and work to transform social systems as a part of efforts to realize economic growth through initiatives aimed at achieving carbon neutrality by 2050.
Support for Impact Startups
Nomura supports the efforts of impact startups to solve social problems and achieve sustainable growth. In October 2022, as a member of the Study Group on Impact Investment established by the Financial Services Agency, we participated in discussions to promote impact investment. In February 2023, we joined the Impact Startup Association(ISA), which was established with the aim of building an impact startup ecosystem and realizing a sustainable society, as a platinum member. At its annual meeting in May 2023, we took the stage at a breakout session on the topic of "Entrepreneurship and Growth of Impact Startups" and introduced our ideas on KPIs for evaluating impact on the environment and society. We will continue to support impact startups' initiatives, centering on finance.
