Achi news desk-
(Bloomberg) — Mizuho Financial Group Inc. will begins offering real estate loans that incentivize property owners to cut greenhouse gas emissions by lowering interest rates if they do so.
The company will begin offering the loans in April, according to internal documents obtained by Bloomberg. Naohiro Takahashi, a company spokesman, confirmed the information.
Sustainability-related loans, which offer favorable interest rates to companies that achieve specific environmental and social goals, are expanding in Japan. Last year, 665 such loans were made worth ¥711 billion ($4.7 billion), according to government data.
Decarbonisation of newly built real estate is progressing in office buildings, residences and logistics facilities in Japan, but the process for older properties has been relatively slow. In particular, the purchase and management of existing properties by private funds has been a challenge, as they have been reluctant to invest money in decarbonisation amid yield concerns.
The loans will be handled by Mizuho Bank and Mizuho Trust & Banking, internal Mizuho documents showed. Non-sustainability related loans for private finance will be targeted. Goals are set at the time of property acquisition, and the interest rate is reduced based on certain metrics.
Lenders are required to provide the bank with information on target achievement status at least once a year. The bank will also use a third party appraisal agency to ensure objectivity.
©2024 Bloomberg LP
Ad blocking test (Why?)
Source link
The post Mizuho Will Offer Decarbonization-Linked Real Estate Loans – BNN Bloomberg appeared first on Canada News Media.
