Nippon Life Insurance intends to commit 2 trillion yen to infrastructure financing, mainly for U.S. data center construction, Nikkei Asia reported Sunday, citing Akira Shibata, head of structured finance sales.
The insurer will use project finance structures, where repayment comes from the backed projects' revenue. Nippon Life is also considering loans for Japanese data centers by the end of fiscal 2026, though the U.S. remains its top priority, the news daily said.
The company held about 1 trillion yen in outstanding loans as of March and aims to double that by fiscal 2035 by adding projects faster than repayments, the report said.
Shibata said U.S. project finance offers appealing spreads averaging over 2%, while also helping diversify the insurer's investment portfolio, according to the report.
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