Mitsubishi UFJ to focus on clean energy deals in 2014
(25 February 2014 – Japan) Clean energy projects, with solar energy the main area of investment is expected to remain a key project target in 2014 for Mitsubishi UFJ Financial Group, the largest lender in Japan.
Mitsubishi UFJ was lead arranger of 37 deals totalling about US$2.5 billion (A$2.8 billion) last year, according to the Tokyo-based bank.
Twenty of the deals were for projects in North America, nine in Japan, five in Australia, and three in the United Kingdom.
“Our projection is that it will be about the same as last year globally,” Tomonori Miyagawa, a Senior Manager at the project finance department of Bank of Tokyo-Mitsubishi UFJ, said in an interview.
The lending pipeline for renewables has boomed in Japan as the government stokes demand with incentive programs intended to diversify energy sources following the Fukushima nuclear disaster almost three years ago. Japan was the second-largest market for solar with 6.7 gigawatts of installations last year, according to Bloomberg New Energy Finance.
In terms of asset financing in Japan last year, Mitsubishi UFJ was lead arranger for $916 million of credit for eight solar projects and one wind farm, according to the bank.
Solar will probably be the focus of clean energy financing again this year, according to Yoko Yanagida, who oversees project financing in Japan for the bank.