Orix Bank to Secure $2.89 Billion for Renewables Investing

• Orix Bank is providing $2.89 billion in funding for renewable energy and logistics projects this fiscal year, with a goal of 1% return on assets through debt securitization. Leveraging the ESG investment trend, the bank seeks to capitalize on the rising renewables sector.

Orix Bank, a Japanese digital lender, has announced plans to extend $2.89 billion in funding for renewable energy and logistics projects this fiscal year. The loans are projected to account for nearly a fifth of outstanding loans in the year ending March 2024, and will be securitized and sold to investors in the insurance, regional finance, and other sectors. Orix Bank seeks to capitalize on the growing ESG investment trend in the renewables sector to enhance its asset efficiency. They plan to achieve a 1% return on assets by pursuing debt securitization.

What Return on Assets Is Orix Bank Targeting With Its Renewable Energy Loan Securitization?

• -Orix Bank's goal is to secure a 1% return on assets from its renewable energy loan securitization.
• The bank will be securitizing $2.89 billion of loans in the year ending March 2024.
• The loans are projected to account for nearly 20% of Orix Bank’s outstanding loans.
• The bank will be selling the loans to investors in the insurance, regional finance, and other sectors.
• Orix Bank is taking advantage of the growing trend of ESG investments in the renewables sector to increase its asset efficiency.
• The loan securitization will be used to fund renewable energy and logistics projects.