Chubu Electric Power Co.,Inc. | Start of the Operations of SPARX Group “Mirai Renewable Energy Fund”. Chubu Electric Power,SMBC and Mizuho Bank to Invest Following Toyota - Press Releases(2018)
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Press Release 2018

Start of the Operations of SPARX Group “Mirai Renewable Energy Fund”. Chubu Electric Power,SMBC and Mizuho Bank to Invest Following Toyota

November 9, 2018

SPARX Group Co., Ltd.
Toyota Motor Corporation
Chubu Electric Power Co.,Inc.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.

Starting this November, SPARX Asset Management Co., Ltd., a subsidiary of SPARX Group Co., Ltd. (hereinafter, SPARX) has started operating the “Mirai Renewable Energy Fund”, first announced on September 19 by SPARX and Toyota Motor Corporation (hereinafter, Toyota). This Fund will be investing in new renewable energy plants. In addition to Toyota, Chubu Electric Power Co., Inc. (hereinafter, Chubu Electric Power), Sumitomo Mitsui Banking Corporation (hereinafter, SMBC), and Mizuho Bank, Ltd. (hereinafter, Mizuho Bank) have committed a total of 23.6 billion yen as the Fund’s starting capital. SPARX is aiming to eventually increase the fund size to 30 billion.

In October, the Intergovernmental Panel on Climate Change (IPCC) released a report that warned that the world’s temperature is likely to increase 1.5 degrees in 2030 compared to before the Industrial Revolution, increasing the risk of extreme weather such as heavy rain, flooding, and droughts. The report highlighted that to keep the rise in temperature at around 1.5 degrees, the world’s CO2 emissions must be reduced by 45% by 2030 compared to 2010 levels, which then further needs to be reduced to effectively zero by 2050. The report notes that to pursue this goal, the energy sector must increase the share of renewable energy as a source of total electricity generated to 70 to 85% by 2050.

The Japanese government has indicated in the “5th Strategic Energy Plan” its policy to aim to make renewable energy a main power source looking ahead to 2050.

Chubu Electric Power, which has announced its new decision to invest in the fund, is promoting ESG management that continuously increases the corporate value of the whole group, and is working on actively developing renewable energy and reducing CO2 emissions along the entire value chain from power generation to sales. By investing in this fund, we believe that we will be able to further contribute to deploying renewable energy nationally as well as reducing CO2 emissions.

SMBC aims to deploy various types of renewable energy generation and expand its use across Japan by investing in this fund with Toyota and other investors. SMBC will continue to fulfill our social responsibility as a global financial group and will contribute to the development of a sustainable society by promoting a low carbon society as a financial institution.

Mizuho Bank is working on solving global social issues related to the environment, energy, infrastructure, public health, and food security, among others. Mizuho Bank will continue to contribute more than ever to the sustainable development of society through environment-related financing including investing in this fund, investing and lending in renewable energy projects and businesses.

SPARX as of the end of September 2018, is investing in 25 solar, woody biomass, wind, geothermal plants across Japan as a fund which generates approx. 380MW, and has started selling approximately 161MW of the electricity generated by 17 plants. The Fund is one of the largest in Japan which invests in renewable energy plants. SPARX has adopted the basic principle of “leading the deployment of renewable energy and its use across Japan” for this Fund which has attracted a diverse range of Japanese companies that represent Japan. Through this Fund, SPARX along with its investors will seek to further increase environmental consideration, drive the development of local economies, and raise Japan’s energy self-sufficiency rate.

[Overview of the new fund]

Basic principle 

Leading the deployment of renewable energy and its use across Japan

 Name of the fund

Mirai Renewable Energy Investment Limited Partnership

Investment targets 

New domestic renewable energy power plants in Japan(Solar, wind power, biomass, geothermal, hydropower)

 Investors

General partner: SPARX Group CO., Ltd.
Limited Partner: Toyota Motor Corporation, Chubu Electric Power Co., Inc. Sumitomo Mitsui Banking Corporation, Mizuho Bank Ltd.

 Current fund size

23.6 million (as of November 9, 2018)

 Target fund size

On the scale of 30 million

 Additional financing period

November 1, 2018- March 29, 2019

Fund period 

25 years from November 1, 2018