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
(100 million 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 5 【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】
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12 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.
13 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.
14 Japan Real Estate Asset Management Co.,Ltd. The Norinchukin Bank Japan Credit Rating Agency, Ltd. JRE plans to disclose the progress of the SPTs it has set, with verification or certification for each item, in its Sustainability Report and on its website, and to report annually to the Norinchukin Bank. When the loan becomes due, JRE, The Norinchukin Bank and JCR will conduct a review of the loan to assess not only the achievement of the SPTs but also the impact on JRE and society. E 2021/1/29 10.5 years 50 【SPT and Impact Indicator】
SPTs1: Reduction in greenhouse gas emissions compared to FY2013 levels
(FY2030 target: 35% reduction compared to FY2013 levels)
SPTs2: Number of buildings with ZEB certification under BELS
(including Nearly ZEB, ZEB Ready, and ZEB Oriented)
(FY2030 target: 5 buildings)

【Conditions】
In order to incentivize the achievement of JRE's sustainability strategy, the timing of interest rate reviews is set multiple times until the repayment date arrives, and the lending terms are linked to the progress of SPTs at the timing.
15 Japan Real Estate Asset Management Co.,Ltd. The Norinchukin Bank Japan Credit Rating Agency, Ltd. JRE plans to disclose the progress of the SPTs it has set, with verification or certification for each item, in its Sustainability Report and on its website, and to report annually to the Norinchukin Bank. When the loan becomes due, JRE, The Norinchukin Bank and JCR will conduct a review of the loan to assess not only the achievement of the SPTs but also the impact on JRE and society. E 2021/1/29 11 years 50 【SPT and Impact Indicator】
SPTs1: Reduction in greenhouse gas emissions compared to FY2013 levels
(FY2030 target: 35% reduction compared to FY2013 levels)
SPTs2: Number of buildings with ZEB certification under BELS
(including Nearly ZEB, ZEB Ready, and ZEB Oriented)
(FY2030 target: 5 buildings)

【Conditions】
In order to incentivize the achievement of JRE's sustainability strategy, the timing of interest rate reviews is set multiple times until the repayment date arrives, and the lending terms are linked to the progress of SPTs at the timing.
16 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 USD 0.05 billion 【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.
17 SCREEN Holdings Co., Ltd. MUFG Bank, Ltd. Japan Credit Rating Agency, Ltd. Progress of the set SPTs will be reported to MUFG Bank and the Loan Participant Banks once a year.
When the repayment date arrives, SCREEN Holdings, MUFG Bank, and JCR will conduct a review of the Loan to assess not only the achievement of the SPTs but also the impact on SCREEN Holdings and society.
E 2021/3/16 3 years 100 【SPT and Impact Indicator】
Reduce CO2 emissions (on a gross basis, Scope 1 and 2) by 10% by the fiscal year ending March 2024, compared to the fiscal year ending March 2019, as a milestone toward the SBT of reducing CO2 emissions by 30% by the fiscal year ending March 2030.

【Conditions】
・The interest rate will be revised several times until the repayment date, and the lending conditions will be linked to the progress of SPTs at the timing.
・SCREEN Holdings, MUFG Bank and JCR will assess the degree of achievement of sustainability in FY2024, which will be the benchmark for the final assessment.
18 Nippon Yusen Kabushiki Kaisha Sumitomo Mitsui Banking Corporation Japan Credit Rating Agency, Ltd. NYK will report to SMBC on the score results of CDP set as SPT as soon as they are received from CDP, the scoring organization.

In addition, when the repayment date arrives, NYK, SMBC, and JCR will conduct a review of the Loan and evaluate the status of the achievement of the SPT as well as the status of the impact on NYK and society.
E 2021/3/31 5 years USD 0.6 billion 【SPT and Impact Indicator】
Maintain a high rating (A or A-) in the CDP climate change score

【Conditions】
・The impact indicators are monitored once a year, and the results are reported to the lender as soon as NYK receives the score results.
・Confirmation of the final level of sustainability achievement at the time of repayment
・NYK, SMBC, and JCR will conduct a review of the loan in the year of repayment to assess the status of impact on NYK and society in addition to the status of SPT achievement
19 Nippon Yusen Kabushiki Kaisha MUFG Bank, Ltd. Japan Credit Rating Agency, Ltd. NYK will report the score results of CDP, which has been set as the SPT, to MUFG, the arranger, as soon as they are received from CDP, the scoring organization.

In addition, when the repayment date arrives, NYK, MUFG, and JCR will conduct a review of the Loan to evaluate the status of the achievement of the SPT as well as the status of the impact on NYK and society.
E 2021/3/31 5 years USD 0.204 billion 【SPT and Impact Indicator】
Maintain a high rating (A or A-) in the CDP climate change score

【Conditions】
・The impact indicators are monitored once a year, and the results are reported to the lender as soon as NYK receives the score results.
・Confirmation of the final level of sustainability achievement at the time of repayment
・NYK, MUFG, and JCR will conduct a review of the loan in the year of repayment to assess the status of impact on NYK and society in addition to the status of SPT achievement
20 SHIMIZU CORPORATION Mizuho Bank, Ltd. Japan Credit Rating Agency, Ltd. Shimizu Corporation plans to report annually to Mizuho Bank and the other banks participating in the commitment line on the progress of the SPT it has set.

In addition, when the commitment date arrives, Shimizu Corporation, Mizuho Bank and JCR will review the commitment line and assess the status of the achievement of the SPT as well as the impact on Shimizu Corporation and society.
E 2021/3/31 3 years 200 【SPT and Impact Indicator】
Reduce CO2 emissions from construction projects by 10% from FY2017 levels by the end of FY2023

【Conditions】
・Until the commitment deadline arrives, there will be several times when the commitment fee will be reviewed, and the commitment fee will be linked to the progress of the SPT at that time.
・In addition, Shimizu Corporation, Mizuho Bank, and JCR will evaluate the degree of achievement of the sustainability strategy in FY2023, which is the time when the final decision is made.
21 SEIBU HOLDINGS INC. Sumitomo Mitsui Trust Bank, Limited Japan Credit Rating Agency, Ltd. Seibu HD will report to Sumitomo Mitsui Trust Bank once a year on the progress of the SPTs set.

When the repayment date arrives, a review of the Loan will be conducted among Seibu HD, Sumitomo Mitsui Trust Bank, Limited and JCR to assess the status of impact on Seibu HD in addition to the status of achievement of SPTs.
E 2021/3/31 9 years 50 【SPT and Impact Indicator】
Reduce unit CO2 emissions (CO2 emissions per operating revenue) by 25% from FY2018 levels by FY2030.

【Conditions】
・The timing of interest rate reviews is set annually until the repayment date arrives, and loan terms and conditions are linked to the achievement of SPTs at that time.
・The status of achievement of SPTs and sustainability actions will be assessed by Seibu HD, Sumitomo Mitsui Trust Bank, Limited and JCR at the time of repayment of the Loan (2030).
22 Tokyo Century Corporation Sumitomo Mitsui Trust Bank, Limited Japan Credit Rating Agency, Ltd. Tokyo Century plans to report annually to Sumitomo Mitsui Trust Bank on the progress of the established SPTs. When the repayment period is due, the three companies — Tokyo Century, Sumitomo Mitsui Trust Bank, and JCR — will review the loan to assess not only the progress of SPTs but also the impact on Century Tokyo and society. E 2021/3/31 5 years 150 【SPT and Impact Indicator】
SPT1:
Achieve the targets for annual power generation and CO2 reduction by the photovoltaic power generation business of Kyocera TCL Solar GK. (Targets for FY 2023 and beyond are set above the target level for FY 2022)
SPT2:
Achieve the projected GHG reduction contribution (cumulative) target of the JCM (bilateral credit scheme)
*Specific target values will be disclosed in the ESG Data Book to be published in fiscal 2021.
SPT3:
Maintain DX certification (Ministry of Economy, Trade and Industry).

【Conditions】
・Report the progress of SPTs to Sumitomo Mitsui Trust Bank once a year
・Establish a review of loan terms and conditions during the period in accordance with the progress of the SPTs
・When the repayment period is due, the three companies — Tokyo Century, Sumitomo Mitsui Trust Bank, and JCR — will evaluate the achievement level of sustainability.
23 TSUBAKI NAKASHIMA CO., LTD. Resona Bank, Limited Rating & Investment Information, Inc. Tsubaki Nakashima plans to submit a report on consolidated sales of ceramic balls to Resona Bank once a year and disclose the information to investors at financial results briefings and other occasions. E 2021/3/31 7 years 50 【SPT and Impact Indicator】
Achieve consolidated ceramic ball sales of 8,254 million yen in the fiscal year ending December 2023.
【Conditions】
Interest rate spreads applied during each interest payment period are set in two ways: if the SPT targets are met, and if the SPT targets are not met.
24 KUSATSU ELECTRIC CO.,LTD. SHIGA BANK, LTD. Shigagin Keizai Bunka Center CO.,LTD. ・ Describe the SPTs in the action plan to be submitted to Shiga Prefecture, and submit a copy to the lender.
・ The action plan is published on the Shiga Prefecture website.
・ The progress is described in the action report submitted to Shiga Prefecture once a year, and a copy is submitted to the lender.
・ The action report is also published on the Shiga Prefecture website.
・ Disclose information about SPTs to the public
E 2021/3/31 - 5 【SPT and Impact Indicator】
Set a reduction target in line with the action plan in the main plant, which accounts for more than two-thirds proportion of the entire company in greenhouse gas emissions, based on the "Shiga Prefecture, low-carbon society promotion plan" of Shiga Prefecture.

【Conditions】
The interest rate spread applied during the life of a loan is determined by attainment of the following four requirements.
① The borrower shall publish or report in writing to the lender the progress of the action items targeted in the announced SDGs declaration or environmental policy.
② The borrower shall submit the business action plan to Shiga Prefecture and a copy thereof to the Lender.
③ Each year, the borrower shall submit the business conduct report to Shiga Prefecture and a copy thereof to the lender by the deadline set by Shiga Prefecture.
④ Achieve a greenhouse gas reduction rate of 51.7% in total emissions or 59.3% per unit of production in fiscal 2030 compared to fiscal 2013.
25 SUMIMOTO FACTORY Co.,Ltd. The Chugoku Bank, Ltd Rating & Investment Information, Inc.

Okayama Economic Research Institute
・ Report to the Bank of China once a year
・ At the time of reporting, the Okayama Institute of Economic Research will confirm the validity.
E 2021/5/21 5 years 0.1 【SPT and Impact Indicator】
Power consumption reduction rate per sales (%)
2022/5 Target : Down 1.5% from 2021/5
2023/5 Target : Down 1.5% from 2022/5
2024/5 Target : Down 1.5% from 2023/5
2025/5 Target : Down 1.5% from 2024/5

【Conditions】
-
26 Yamatojuken The Chugoku Bank, Ltd Rating & Investment Information, Inc.

Okayama Economic Research Institute
・ Report to the Bank of China once a year
・ At the time of reporting, the Okayama Institute of Economic Research will confirm the validity.
E 2021/6/30 5 years 0.1 【SPT and Impact Indicator】
ZEH ratio (%)
Fiscal 2021 target: 80%
Fiscal 2022 target: 80%
Fiscal 2023 target: 80%
Fiscal 2024 target: 80%

【Conditions】
-
27 Fujii Store Corporation The Chugoku Bank, Ltd Rating & Investment Information, Inc.

Okayama Economic Research Institute
・ Report to the Bank of China once a year
・ At the time of reporting, the Okayama Institute of Economic Research will confirm the validity.
E 2021/7/1 5 years 0.5 【SPT and Impact Indicator】
Power consumption reduction rate (%)
FY 2021 target: 1.5 less than FY 2020
FY 2022 target: 1.5 less than FY 2021
FY 2023 target: 1.5 less than FY 2022
FY 2024 target: 1.5 less than FY 2023

【Conditions】
-