Orix issues EUR-300m green bond to fund Elawan acquisition

Japanese financial services group Orix Corporation (TYO:8591) said on Thursday that it is issuing green bonds for a total amount of EUR 300 million (USD 327.2m) to pay for the costs of acquiring the majority shareholding in Spanish wind and solar developer Elawan Energy SL.

Last summer, Orix acquired an 80% stake in Elawan, a firm that was described at the time as having a development pipeline with over 10 GW of projects and a gigawatt-scale track record. The transaction was closed for an undisclosed sum.

Orix will seek to place its first green notes with institutional investors in overseas markets such as Europe and Asia. The interest rate on the bond is 1.919% per year, and the notes mature in April 2026, the company said.

Elawan’s work in the renewables space makes it an eligible business area that meets criteria outlined in Orix’s green bond framework, the Japanese company added.

(EUR 1.0 = USD 1.091)

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