UPDATE 1 — Japan's Nippon Life plans $13 billion for data center financing in US, Nikkei Asia reports
(Adds details from the report) Sept 20 (Reuters) — Japan's Nippon Life Insurance plans to invest 2 trillion yen ($12.75 billion) in infrastructure financing, including the construction of data centers in the United States, Nikkei Asia reported on Sunday. Nippon Life intends to use the capital through project finance arrangements, under which loans are repaid using cash flows generated by the underlying projects, the report said. The insurer sees US project-finance investments as offering attractive spreads of more than 2% on average, while helping to diversify its investment portfolio, the report added. Reuters could not immediately verify the report. Nippon Life Insurance could not be immediately reached for comment. Japan is among the hottest markets for global private capital, experiencing a wave of private equity-led M&A and real estate deals in recent years. While Japanese firms have long exported capital abroad in the face of sluggish domestic growth, the return of inflation has prompted a surge in growth investments at home, while higher interest rates and growth opportunities in areas such as data centers and logistics are making Japanese assets more attractive. Nippon Life
75 billion) in infrastructure financing, including the construction of data centers in the United States, Nikkei Asia reported on Sunday. Nippon Life intends to use the capital through project finance arrangements, under which loans are repaid using cash flows generated by the underlying projects, the report said. The insurer sees US project-finance investments as offering attractive spreads of more than 2% on average, while helping to diversify its investment portfolio, the report added. Reuters could not immediately verify the report.
Nippon Life Insurance could not be immediately reached for comment. Japan is among the hottest markets for global private capital, experiencing a wave of private equity-led M&A and real estate deals in recent years. While Japanese firms have long exported capital abroad in the face of sluggish domestic growth, the return of inflation has prompted a surge in growth investments at home, while higher interest rates and growth opportunities in areas such as data centers and logistics are making Japanese assets more attractive.
Nippon Life is also weighing loans for data center projects in Japan by the end of fiscal 2026 and aims to double its outstanding balance to 2 trillion yen by fiscal 2035 by adding new projects at a pace exceeding repayments, the report said. com;)