Baker McKenzie advises major Japanese financial institutions on Japan’s largest ever project finance arrangement for a cutting-edge coal power project related to the reconstruction of Fukushima
Tokyo, Japan, 12 January 2017 – Baker & McKenzie (Gaikokuho Joint Enterprise) provided legal advice to the Bank of Tokyo-Mitsubishi UFJ, Ltd., Development Bank of Japan, Inc., Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation on a project finance arrangement for a state-of-the-art Integrated coal Gasification Combined Cycle (IGCC) power plant project.
Two plants will be constructed in Fukushima Prefecture for this project, in Iwaki City and Hirono-machi, Futaba-gun, respectively. Both plants will use IGCC technology, a next-generation clean coal technology, and will have each generating capacity of 540MW, with operations slated to commence in September 2020 and September 2021 respectively.。
The total project cost amounts to over JPY 300 billion (USD 2.6 billion*), which will be procured by the above financial institutions through the largest project finance arrangement in the history of Japan. Equity investments will also be made by the following sponsors: Mitsubishi Corporation Power, Ltd., Mitsubishi Heavy Industries, Ltd., Mitsubishi Electric Corporation, Tokyo Electric Power Company Holdings, Inc. and Joban Joint Power Co., Ltd.
Naoaki Eguchi, head of the Banking and Finance Practice Group in Tokyo, and partner Tsutomu Kobayashi led the Baker McKenzie team with assistance from associates Chiaki Kawai, Takehito Sekiguchi, Takuya Wada, Hiroyuki Kitamura and Masayoshi Kobayashi.
Mr. Eguchi made the following comments on this project.
“We are honored to have been involved in this meaningful project, as it not only assists in the reconstruction of Fukushima but is important for the development of Japan’s clean coal technology. We look forward to further committing ourselves to providing our clients with valuable legal advice in socially significant business areas.”
* 1 USD = 116 JPY