Domestic Issuance List of Sustainability Linked Loan

Case study of major Sustainability Linked Loan in Japan

No. Funders Main Financial Institutions Independent Evaluator Reporting Policy ESG Category Date of Contract Period of Borrowing Loan Amount
(billion yen)
Sustainability Performance Targets, Impact Indicators and Conditions
1 Nippon Yusen Kabushiki Kaisha MUFG Bank, Ltd. Japan Credit Rating Agency, Ltd. Nippon Yusen Kabushiki Kaisha plans to report to MUFG Bank, Ltd. every year as soon as the score results are received E 2019/11/29 5 years 500 【SPT and Impact Indicator】
SPT is defined as maintaining a high rank in the CDP
Impact indicators disclosed to CDP include the degree of achievement in decarbonization of ships in the medium-term management plan and the long-term decarbonization plan "NYK SUPER ECO SHIP 2050", which is shown by setting targets and confirming the degree of achievement every year.

【Conditions】
The interest rate terms attributed to the CDP score will not change until the repayment due date, as long as the annual monitoring maintains a certain score
2 Toyoda Gosei Co., Ltd. MUFG Bank, Ltd. Japan Credit Rating Agency, Ltd. Toyoda Gosei Co., Ltd. plans to report to MUFG Bank, Ltd. as soon as the results for fiscal 2020 are determined
Toyoda Gosei Co., Ltd. plans to report to MUFG Bank, Ltd. on the progress of SPT achievement every year from fiscal 2021 onward.
E 2019/12/23 4 years 50 【SPT and Impact Indicator】
SPT is defined as the reduction of CO2 and waste emitted through business activities on a per-unit basis
The following 3 goals have been set for the year 2020
① Unit of CO2 intensity (CO2 emissions per sales, globally consolidated): 12% reduction from 2012
② Unit of CO2 intensity (CO2 emissions per unit of sales): 17% reduction from 2012
③ Unit of waste intensity (Waste per unit of sales): 12% reduction from 2012
Achieve the above 3 goals in FY2020 and maintain them thereafter until the repayment deadline

【Conditions】
Preferential interest rates will be maintained if the FY 2020 reduction target is met
3 Sumitomo Heavy Industries, Ltd. Sumitomo Mitsui Trust Bank, Limited Japan Credit Rating Agency, Ltd. Sumitomo Heavy Industries, Ltd. plans to periodically report to Sumitomo Mitsui Trust Bank, Limited on the status of SPT achievement (the final level of sustainability achievement will be confirmed when the repayment deadline arrives) E 【SPT and Impact Indicator】
SPT is defined as targets for reducing CO2 emissions during product production and transportation, and the percentage of sales of environmentally friendly products

【Conditions】
-
4 COSMO ENERGY HOLDINGS Co.,Ltd. Mizuho Bank, Ltd. Japan Credit Rating Agency, Ltd. COSMO ENERGY HOLDINGS Co.,Ltd. will report annually to Mizuho Bank, Ltd. on the achievement of the SPT E 2020/3/31 3 years 100 【SPT and Impact Indicator】
SPT is defined as the start of the group's future onshore wind farm operations and the availability of existing wind farms

【Conditions】
Interest rate terms will vary depending on the achievement of the above
5 Ricoh Company, Ltd. MUFG Bank, Ltd. Rating & Investment Information, Inc. Ricoh Company, Ltd. plans to disclose its greenhouse gas (GHG) emission reductions (SCOPE 1 and 2) to the public every year in "the ESG Data Book" and "Ricoh Group Integrated Reports E 2020/4/10 5 years 100 【SPT and Impact Indicator】
Revised the target for reducing in-house greenhouse gas (GHG) emissions by 2030 to 63% from the 2015 level, up from a previous target of 30%, and obtained certification for this environmental target under the new "1.5℃ target" of the SBT Initiative.
SPT is defined as the GHG reduction target set by Ricoh Company, Ltd. in line with the "1.5℃ target" of the SBT Initiative

【Conditions】
Interest rate terms will vary depending on the achievement of the above
6 Mitsubishi Estate Company,Limited The Norinchukin Bank Japan Credit Rating Agency, Ltd. Mitsubishi Estate Company,Limited plans to report annually to the Norinchukin Bank on the progress of the SPT E 2020/5/29 11years and 3 months 115 【SPT and Impact Indicator】
SPT is defined as CO2 emissions (target for 2030: 35% reduction from 2017) and renewable electricity ratio (target for 2030: 25%) in line with the targets set in "the Mitsubishi Estate Group's SDGs 2030"

【Conditions】
Mitsubishi Estate Company,Limited plans to report to The Norinchukin Bank on the progress of SPT achievement every year, and when the repayment deadline arrives, the three companies (Mitsubishi Estate, The Norinchukin Bank and Japan Credit Rating Agency, Ltd.) will evaluate the final level of sustainability achievement
7 Yamazaki gravel Inc. SHIGA BANK, LTD. Rating & Investment Information, Inc. Yamazaki gravel Inc. plans to make the SPT available on its website, and to announce its progress on the website every year E 2020/9/17 50 【SPT and Impact Indicator】
The SPT is defined as achieving a recycling rate of 93% by 2025 from the current 91%

【Conditions】
Lending terms and conditions are linked to Yamazaki gravel Inc.'s performance on SPT
The interest rate spread to be applied during the lending period is determined based on 3 requirements: ① reporting on the progress of initiatives, ② submission of a third-party opinion, and ③ achievement of the target figure (recycling rate)
If ① and ② are not complied with, the spread will widen.
If ① and ② are complied with, the interest rate will remain the same even if ③ is not achieved, but if ③ is achieved, the spread is set to shrink.
8 MEIDENSHA CORPORATION Sumitomo Mitsui Banking Corporation The Japan Research Institute, Limited.

DNV GL BUSINESS ASSURANCE JAPAN K.K.
MEIDENSHA CORPORATION discloses the targets of its medium-term management plan and annual performance figures in the Meidensha Report every year, and plans to continue to disclose the status of SPT achievement through the publication of the Meidensha Report. E 2020/9/23 【SPT and Impact Indicator】
The following 3 items are established as the SPT for FY 2020
① Expansion of environmental contribution projects:
900,000 tons (841,000 tons in FY2018 and 848,000 tons in FY2019) of CO2 emissions reduction through environmental contribution projects
② Appropriate management of chemical substances:
VOC emissions of 80 tons or less (96 tons in FY2018 and 83.3 tons in FY2019)
③ Strengthen the value chain management:
Green procurement rate of 90% or more (Based on the company's standards, 85% in FY2018 and 87% in FY2019)

【Conditions】
If at least one of the 3 SPTs is achieved, MEIDENSHA CORPORATION can request The Japan Research Institute, Ltd. to evaluate the progress of its efforts to improve its sustainability management and issue a written opinion.
9 SymEnergy Inc. SHIGA BANK, LTD. Rating & Investment Information, Inc. SymEnergy Inc. is planning to make its SPTs available on its website and other media and to disclose its progress once a year. SymEnergy Inc. intends to represent that this financing is based on Sustainability Linked Loans and will ensure transparency by disclosing information about SPTs 2020/11/30 - 25 【SPT and Impact Indicator】
SymEnergy Inc. set up the following as SPT
In renewable energy projects involved in the development;
・Development in collaboration with local businesses, municipalities and other corporate entities in the development area
・The sum of the investment ratio of other corporate entities, etc. is more than 1/3
・Aim to complete two to three projects per year that meet the above

【Conditions】
The interest rate spread applied during each interest payment period is set in two ways: if the SPTs' targets are met or if the targets are not met. The performance of the SPTs and the lending terms are linked and applied over the lending period. The data underlying the number of projects set up as SPTs are managed by SymEnergy Inc. and will be subject to third-party verification by Shigagin Keizai Bunka Center CO.,LTD.
10 Mitsubishi Chemical Holdings Corporation Development Bank of Japan Inc. Mitsubishi Chemical Holdings Corporation (MCHC) will report annually to the Development Bank of Japan the latest information on the progress and achievement of SPT performance.

MCHC will also disclose information on the status of SPT achievement to the public on its website on a regular basis.
E 2020/11/30 10 years 300 【SPT and Impact Indicator】
①Status of promotion of chemical recycling projects that contribute to solving problems related to plastic waste, etc.

②The volume of plastic recycling processed to measure the degree of contribution to solving these issues.

【Conditions】
-
11 Fuyo General Lease Co., Ltd. Development Bank of Japan Inc. Fuyo General Lease Co., Ltd. will report annually to the Development Bank of Japan on the progress and achievement of SPT performance.

In addition, information on the status of SPT achievement will be disclosed to the public on a regular basis via the company's website
E・S 2020/12/14 5 years 50 【SPT and Impact Indicator】
①Number of companies providing BPO services in the Group: Equal to or more than 20,000 (as of March 31, 2022)

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

【Conditions】
-
12 Isetan Mitsukoshi Holdings Ltd. Sumitomo Mitsui Trust Bank, Limited Japan Credit Rating Agency, Ltd. Isetan Mitsukoshi Holdings plans to report to Sumitomo Mitsui Trust Bank on the status of achievement of SPTs once a year.

In addition, Isetan Mitsukoshi Holdings, Sumitomo Mitsui Trust Bank and JCR will evaluate the final level of sustainability achievement in the year when the repayment is due.
E 2021/1/29 5 years 50 【SPT and Impact Indicator】
Maintain a leadership level (A, A-) in the climate change score published by CDP.

【Conditions】
Lending conditions vary depending on the achievement of the above.
13 T'STILE SHIGA BANK, LTD. Shigagin Keizai Bunka Center CO.,LTD. T'STILE will disclose the SPTs on its website, etc., and will announce the progress of the SPTs on its website once a year.
This will enable Shiga Bank to obtain up-to-date information on the progress of the SPTs.
T'STILE intends to declare that this financing is based on the Sustainability Linked Loan. Transparency will be ensured by disclosing information on SPTs to the public.
E 2021/1/25 - 0.5 【SPT and Impact Indicator】
Rate of mixed construction waste (ratio of mixed construction waste to total construction waste) and number of net zero energy houses (ZEH) built

【Conditions】
The interest rate spread applied during the loan period is determined by the achievement of the following two requirements
(1) The borrower must report to the lender on the progress of the initiative.
(2) Achieve the target values of SPTs above.

If (1) is not complied with, the spread will be increased. If (1) is complied with, the spread will remain the same even if (2) is not achieved, but the spread is set to decrease for the achievement of each item of SPTs.
14 Nippon Yusen Kabushiki Kaisha SHIGA BANK, LTD. Rating & Investment Information, Inc. The results of NYK's CDP climate change score will be disclosed on the CDP website once a year.
In response to this, NYK will disclose the achievement status of the SPT directly to related parties, and will also disclose it to the public on its own website.
E 2021/2/5 4 years 50百万米ドル 【SPT and Impact Indicator】
To obtain a high score in CDP's climate change score.

【Conditions】
The interest rate spread applied during each interest payment period is set in three ways: when the CDP score of the SPTs is A~A-, B~B-, and C or lower. The lending terms and NYK's performance against the SPTs are linked.