Nomura Securities Co., Ltd.

Nomura Capital Investment Co., Ltd.

Tokyo, March 13, 2026—Nomura Securities Co., Ltd. and Nomura Capital Investment Co., Ltd. today announced that they have supported financing for a 5.4 billion yen green project bond (project-finance-style trust beneficiary interest / asset-backed loan) to fund a grid-scale battery project operated by HD Renewable Energy Co., Ltd. (HDRE). This is the first green project bond in Japan backed by a grid-scale battery business.

 

As Japan increases the use of variable renewable energy such as solar and wind in its power market, grid-scale battery systems have become essential for stabilizing the power grid by providing balancing capacity. 

 

This project uses a merchant-type business model that does not rely on subsidies or long-term fixed-price contracts. Revenues are generated solely through participation in the wholesale power market, the balancing market, and the capacity market, and therefore they fluctuate with market conditions. 

 

Traditionally, project finance and bond markets have favored projects with predictable cash flows —such as solar projects supported by feed-in tariff (FIT) schemes—while merchant-type projects have been considered more challenging to finance. 

 

By implementing mechanisms to appropriately manage and allocate cash flows, the project successfully secured long-term financing repayable within the statutory 20-year maturity period. 

 

This transaction is significant for two reasons: (i) it is Japan’s first green project bond backed by a grid-scale battery business, and (ii) it incorporates a merchant-type business model into a project bond structure.

 

The sponsor group, HDRE, is active in solar power, battery storage, and energy-related services, and it has recently expanded its grid-scale battery projects in Japan. HDRE’s technical and operational expertise and international project experience are integral to running this project.

 

Rating and Investment Information, Inc. (R&I) issued a credit rating and a green bond designation, and also provided a second-party opinion on the bond’s conformity with the Green Bond and Green Loan Principles.

 

Nomura will continue working with HDRE to support the stable operation of this project. By expanding investment and financing in clean energy infrastructure—including grid-scale batteries—Nomura aims to help realize a decarbonized society and contribute to sustainable local economies.