Domestic Issuance List of Sustainability Linked Bond

The first sustainability linked bond in Japan was issued in 2020. The following are major issuance cases in Japan.

Case study of major Sustainability Linked Bond in Japan

Issuer Independent
Evaluator
Reporting Policy Date of
Issuance
Redemption
Period
Issuance Amount Sustainability
Performance
Targets
Bond characteristics
Hulic Co., Ltd.

Japan
Credit Rating
Agency, Ltd.

E&E Solutions Inc.

Hulic Co., Ltd. has disclosed that the development of its own non-FIT solar power generation facilities needed to achieve RE100 will result in up to 40 power plants and a total output of up to about 50 MW by 2025
In addition, details of projects under development as fireproof wooden buildings are disclosed on the company's website and in integrated reports.
By the end of the period, the company plans to disclose the total output of renewable energy developed to achieve RE100
Progress of the SPT will be disclosed on Hulic's website and in the integrated report, etc., along with other KPIs for non-financial information
2020/10/15 10 years 10 billion yen The following 2 items are set as SPT
① Achieve RE100 by 2025
② By 2025, the construction of Japan's first fireproof, 12-story wooden commercial facility in the Ginza 8-chome development plan will be completed.
0.44% per year from the day after October 15, 2020 to October 15, 2026, and the day after October 15, 2026, a coupon step-up of 0.10% will occur if any of the SPTs linked to the terms of issue are not met on August 31, 2026
Fuyo General Lease Co., Ltd.

Japan Credit Rating Agency, Ltd.

Rating & Investment Information, Inc.

2020/12/24 7 years 10 billion yen

The following three items will be set as SPT
① The percentage of electricity consumed by the Fuyo Group from renewable energy sources will be 50% or more by July 2024.

② Cumulative transaction amount for "Support Program for Fuyo Renewable Energy 100 Declaration" and "Fuyo Zero Carbon City Support Program"※2: 5 billion yen or more by July 2024

※1: Preferential financing program for companies participating in RE100 and RE Action, a program to declare 100 percent renewable energy.

※2: A finance program aiming to boost the efforts of "Zero Carbon City" promoted by the Ministry of the Environment.

The terms and conditions of the interest rate are as follows

0.380% per annum for the period from the day after December 24, 2020 to December 24, 2024

From the day after December 24, 2024, 0.10% coupon step-up will occur if any of the SPTs linked to the issue terms are not met on July 31, 2024

Nomura Research Institute, Ltd. Rating & Investment Information, Inc. Post Third-party warranty report on KPI baseline (2013 standard value) and KPI actual value on the NRI Group's ESG databook or website, and include information on NRI's sustainability strategy in an integrated report 2021/3/26 12 years 5 billion yen (1) Reduce greenhouse gas emissions of the NRI Group by 72% in FY2030 (compared to 2013) (Scope1 + 2)
(2) Increase the renewable energy utilization rate of data centers to 70% in FY2030
It has a step-up interest rate and has a call option that can be redeemed in advance on September 30, 2031 before the step-up interest rate is applied if it is determined that the target has been achieved. The interest rates stated in bond disclosure documents and NRI's performance against SPT are linked, providing an incentive to achieve SPT goals.
TAKAMATSU CONSTRUCTION GROUP CO.,LTD. Japan Credit Rating Agency, Ltd. The progress of KPI performance is planned to disclose to investors after the end of each fiscal year.Limited third-party verification will be also obtained from JCR regarding disclosure items related to the progress of SPTs.If there is a delay in progress due to unexpected circumstances, disclosure of cause analysis and future countermeasures will be considered. 2021/3/19 5 years 10 billion yen Achieved cumulative sales of SDGs contribution of more than 391.1 billion yen from the fiscal year ending March 2022 to the fiscal year ending March 2025
KPI: SDGs contribution sales
If SPTs cannot be achieved, a premium of 0.5 yen will be paid for every 100 yen of corporate bonds.
ANA HOLDINGS INC. Rating & Investment Information, Inc. ANA Holdings plans to disclose the evaluation results of the four external indicators listed in the SPTs as of the end of each fiscal year to the public through its website and integrated report once a year. 2021/6/8 5 years 20 billion yen ① Selected as a constituent of DJSI World and DJSI Asia Pacific
② Selected as a constituent of the FTSE4Good Index
③ Selected as a constituent of the MSCI Japan ESG Select Leaders Index
④ Obtained evaluation of CDP "A-" or higher
If two or more of the above four SPTs have not been achieved as of the end of FY2022 (March 31, 2023), donations are made to generally recognized corporations and organizations that are engaged in activities aimed at creating a positive impact on the environment and society. In addition to its own ESG initiatives, donation activities create additional positive impact through support.
GLP J-REIT Japan Credit Rating Agency, Ltd. With regard to the status of achievement of the SPTs, JRF plans to obtain a limited verification report from JCR by the judgment date in July 2025 and make it public. In addition, regarding the achievement status of SPTs thereafter, JRF plans to obtain a limited verification report from JCR by the judgment date in July of each year and disclose it. 2021/9/28 7 years 6 billon yen The percentage of GLP J-REIT's portfolio with high-ranked environmental certifications* is 80% or more (based on total floor area).
*DBJ Green Building certification: 5, 4, or 3 stars; CASBEE: S, A, or B+; BELS: 5, 4, or 3; LEED: Platinum, Gold, or Silver; or equivalent or higher rank in the successor certification
If it is determined on the determination date that the SPTs have been achieved on the determination date, the interest rate on and after September 28 of the year following the determination date will be stepped down to 0.234% (-0.05% from the initial interest rate) (reward type).
If the SPTs are not achieved on the base date, the interest rate on and after September 28 of the year following the base date will be 0.284%, the same as the initial interest rate.
Tokyu Fudosan Holdings Corporation Japan Credit Rating Agency, Ltd. At the end of each fiscal year, the status of GHG emissions and carbon-minus initiatives for the fiscal year under review will be disclosed on the Tokyu Land Corporation website with respect to KPI performance.
The disclosure of GHG emissions and carbon minus emissions to confirm the progress of SPTs will be subject to third-party verification by an external certification body.
2021/10/11 10 years 10 billion yen

SPT1: Reduce greenhouse gas emissions by 46.2% by FY2030

SPT2: Achieve carbon-negative status by FY2025
(The amount of reduction contribution from renewable energy generation, etc. exceeds the company's own CO2 emissions)

If the SPTs are not met at the time of determination, the following amounts will be paid on the redemption date to the donors related to the "Green Linkage Project" and other similar environmental organizations
SPT1: 0.25% of the issue amount
SPT2: 0.25% of the issue amount
AEON MALL Co., Ltd. Rating & Investment Information, Inc. AEON MALL discloses the latest performance values for KPIs, SPT judgment results, and information on sustainability strategies on its website once a year.
The report of the judgment results is scheduled to be disclosed in the integrated report around September 2026, and when making a donation, the donation destination, donation amount, and donation implementation time will be included in the report content.
2021/11/26 5 years 20 billion yen CO2-free electricity used at all AEON MALLs in Japan at the end of 2025 If the SPT is confirmed to be unachievable at the time of determination at the end of FY2025, an amount equivalent to 0.2% of the bond issue amount will be donated to a public interest incorporated foundation (e.g. AEON Environmental Foundation) by the end of October 2026.
ARAKAWA CHEMICAL INDUSTRIES, LTD. Japan Credit Rating Agency, Ltd. ●The following items will be disclosed at least once a year
・Updates on the performance of selected KPIs (including baseline assumptions)
・Information useful for lenders to gauge the level of ambition of SPTs

● Disclose the following information to the extent possible
・A qualitative and quantitative description of the main factors that contributed to the improvement in performance/KPIs (including M&A activities, etc.)
・Explanation of how improved performance will impact the borrower's sustainability
・Whether or not KPIs are reevaluated, whether or not established SPTs are revised, and whether or not baseline assumptions or the scope of KPIs are changed
2021/11/26 5 years 5 billion yen SPT1: Reduce CO2 emissions by 30% in FY2025 compared to FY2015

SPT2:Increase the consolidated sales index of sustainable products by 25% or more in fiscal 2025 compared to fiscal 2019
Financial characteristics are subject to change depending on whether or not predetermined SPTs are achieved for selected KPIs.
ASICS Corporation Rating & Investment Information, Inc. Once a year, ASICS reports the KPI results on its website, along with its efforts to achieve SPT. 2021/12/2 5 years 10 billion yen Maintain leadership level in CDP climate change in 2025 (maintain A- or above) The bond is scheduled to be redeemed at the end of December 2026, and the achievement of the SPT will be judged based on the results in 2025; if the SPT is not achieved, emission credits (credits/certificates of CO2 reduction value) equivalent to 0.1% of the bond issue amount will be purchased.
TDK Rating & Investment Information, Inc. TDK publishes information on the latest performance of KPIs, achievement status of SPTs, and sustainability strategies on its website once a year. The report of the judgment results is scheduled for around January 2027, and when making a donation, the name of the recipient, the reason for selection, the amount of the donation, and the timing of the donation will be included in the report. 2021/12/2 7 years 40 billion yen (1) Improve CO2 emissions per unit of sales by 30% in FY2025 compared to FY2014
(2) Maintain A/A- in the final CDP climate change score by 2025
(3) Achieve a 50% adoption rate of renewable energy by FY2025
If any two or more of the three SPTs are not achieved, a cumulative amount equivalent to 0.3% of the bond issue amount will be donated to public interest incorporated associations, etc., whose purpose is environmental conservation activities by the time the bonds are redeemed.
  • As of January 10, 2022
  • Prepared by the Ministry of the Environment based on the websites of fundraisers, financial institutions, and third-party evaluation institutions
  • * This database is not screened by the Ministry of the Environment and is compiled based on the labeling declared by issuers and financial institutions.