Japan's SMBC sells $500m green bond

Sumitomo Mitsui Banking Corp sold Japan's first-ever dollar green bond after Development Bank of Japan's euro-denominated issue last year.

Sumitomo Mitsui Banking Corp raised $500 million through the sale of green bonds early on Thursday, becoming the first Japanese entity to issue the environment-friendly debt instruments in dollar form.

SMBC said it plans to use proceeds from the sale to fund new  and existing projects that promote renewables and increase energy efficiency. 

The Japanese bank may also opt to swap a portion of the dollar-denominated proceeds into Japanese yen, according to a senior banker familiar with the deal. 

Funding environmental projects through the sale of fixed-income securities is a relatively new concept in Asia, but the market is...

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