Conclusion of Loan Agreements By Utilizing the Sustainability Linked Loan Framework Template
Nov. 30, 2022
Tokyo, November 30, 2022 – Kawasaki Heavy Industries, Ltd. announced today that Kawasaki has established the Sustainability Linked Loan Framework Template (“the Template”) and has signed loan agreements with four lenders by utilizing the Template. The Template enables any financial institutions to lend sustainable linked loan without preparing each own framework. This is an advanced and unique approach in sustainable finance.
■Lenders that have entered into loan agreements based on the Template
|November 2022||Meiji Yasuda Life Insurance Company|
|November 2022||Nippon Life Insurance Company|
|November 2022||The Norinchukin Bank|
|November 2022||Sumitomo Mitsui Banking Corporation|
The Template was established in accordance with the “Sustainability Linked Loan Principles” drawn up by the Loan Market Association* and the “Green Loan and Sustainability Linked Loan Guidelines” issued by the Ministry of the Environment, Government of Japan. For the Template, Kawasaki has obtained a third-party opinion from Japan Credit Rating Agency, Ltd.
Supported by Development Bank of Japan Inc., the Template has set the following KPI (key performance indicator) and “Sustainability Performance Targets” (“SPTs”) regarding the establishment of a hydrogen supply chain which is one of the priority fields in its "Group Vision 2030", and also essential for the sustainable growth of Kawasaki and the achievement of carbon neutrality in Japan.
|KPI||Establishment of Hydrogen Supply Chain|
|SPTs I||Construction of 1 large liquefied hydrogen carrier to be commercialized by FY 2026|
|SPTs II||Transporting capability of 225,000 tons/year or more of liquefied hydrogen to Japan by FY 2031|
By utilizing the Template, Kawasaki will not only promote its own sustainable finance initiatives, but also contribute to the promotion of sustainable finance in the loan market by reducing the burden of preparing each own framework.
Kawasaki has set a sustainable finance target in its “Group Vision 2030” for 50% of its long-term debt in FY2030 and 100% in FY2050. By making active use of the Template, Kawasaki will accelerate its sustainability management initiatives to realize the “Group Vision 2030” and strengthen its engagement with stakeholders to contribute to the achievement of the SDGs and a sustainable society.
* The Loan Market Association was established in 1996 to improve liquidity, efficiency and transparency in the primary and secondary syndicated loan markets in Europe, the Middle East and Africa.
Third-Party Opinion by Japan Credit Rating Agency, Ltd. (Available in Japanese Only):
About Kawasaki’s Sustainable Finance