The Tokyo Metropolitan Government's first sustainability bond took this year's Sustainability bond of the year – local authority/municipality award.

The bond raised €300 million ($324 million) and was issued under its Sustainability Bonds Framework, which was released ahead of the issue. It was also the issuer's first ESG labelled international bond.

Proceeds from the bond will be used on five project categories based on the Tokyo Environmental Master Plan.

Those categories are; realisation of zero emissions, realisation of a society in harmony with nature, disaster countermeasures, measures for aging public facilities and infrastructure, and building an inclusive educational environment.

Goldman Sachs, Citigroup, Morgan Stanley, BNP Paribas acted as bookrunners while Moody's provided a second opinion on the framework, stating it "demonstrates a significant overall contribution to sustainability," and "the expected impact of the eligible projects is considered significant." The bond has a five-year tenor and coupon of 2.625%.