Barclays to launch ‘solar bonds’ in Japan

UK banking group Barclays is set to support 300 MW of Japanese solar power projects with green solar bonds.

The projects have been valued at an estimated JPY 50 billion (£272 million) with Barclays aiming to offer to offer an alternative investment option for clients.

The Japanese government is aiming to double the share of renewables in the country’s energy mix  by 2030 and solar bonds could present a reliable and attractive investment opportunity.

Goldman Sachs started offering solar bonds in Japan two years ago and is now working on financing a solar power development through a Canadian company.

Takashi Morioka, chief analyst for Rating and Investment Information, said: “Others may follow Goldman in the future. It’s uncertain how long the expansion will continue though.”

Solar bonds have low interest rates and are generally considered to be very stable investments.

As well as Barclays and Goldman investing in Japan’s solar power development, Deutsche Bank AG has also indicated a willingness to enter the market.