The Goldman Sachs Group, Inc. GS has set a target of $1 billion of renewable energy bond facility in a bid to ramp up investment in clean energy in Japan. For this purpose, the New York-based financial giant has established the Japan Renewable Project Bond Trust.
Per the company’s statement, “The Trust will target $1 billion in investor capital within the coming few years and provide institutional investors with broader access to long-dated investment grade rated renewable energy bonds. The investor capital will enable the Trust to provide solar and other renewable project developers access to large-scale, more efficient capital market financings as an alternative to traditional domestic bank debt”.
Goldman is currently focused on solar energy; however, it intends to expand the Trust to other renewable energy assets given future opportunities.
The move is in line with Goldman’s pledge to support renewable energy development in Japan as well as globally. Notably, in 2012, the company had revealed its plan to invest and finance $40 billion in clean energy globally in the next 10 years.
Toru Inoue, Vice President in Structured Finance at Goldman Sachs, stated that the Trust will allow the company to offer attractive rates to renewable energy firms that will help them finance their growth through the capital markets.
It seems Goldman is keen on tapping opportunities in the current market scenario now that it sees investors’ inclination toward “environmentally-focused investing”. The company has highlighted the presence of Green Bonds in the fixed income markets that are also drawing institutional investor capital.
Goldman currently carries a Zacks Rank 2 (Buy). Other top-ranked stocks in the investment brokerage space include Cowen Group, Inc. COWN, Morgan Stanley MS and E*TRADE Financial Corporation ETFC. While Cowen sports a Zacks Rank #1 (Strong Buy), both Morgan Stanley and E*Trade carry the same rank as Goldman.
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