Conclusion of First Loan Agreements by Utilizing Kawasaki’s Master Framework

Tokyo, January 31, 2024 – Kawasaki Heavy Industries, Ltd. announced today that it has concluded loan agreements (“the Agreements”) with two lenders as part of its sustainable finance initiatives. The Agreements are the first cases of loan agreements utilizing Kawasaki’s master framework (the Master Framework) announced in November 2023, which covers six types of sustainable finance, and the second sustainable finance agreement based on the Master Framework, following the transition bond announced on January 16, 2024 (scheduled to be issued in late February).

Lenders that have entered into the Agreements

Date	Lenders	Type
January 2024	Sumitomo Mitsui Banking Corporation	Sustainability Linked Loan
	Sumitomo Mitsui Trust Bank, Limited	Transition Loan

（Alphabetical order）

The Master Framework is a financing framework that encompasses all forms of sustainable finance and is designed to promote the use of sustainable finance to support the three focal fields in Kawasaki’s Group Vision 2030; “A Safe and Secure Remotely-Connected Society”, “Near-Future Mobility” and “Energy and Environmental Solutions.” By describing specific projects and their objectives in the framework, financial institutions that provide funding will be able to gain a deeper multifaceted understanding of Kawasaki’s specific projects and provide loans for the projects they support, rather than providing credit based solely on information in the financial statements.
The Master Framework is certified by a second party to comply with international principles for each project, thereby reducing the burden on both the lender and the borrower. Through this initiative, the company will make a great contribution to the expansion and development of sustainable finance not only in the company but also in Japan.

Kawasaki has set a KPI regarding sustainable finance ratio target as “50% of long-term debt in FY 2030 and 100% in FY 2050" in its Group Vision 2030. With the conclusion of the Agreements, the sustainable finance ratio will become 17%. The company will accelerate its sustainability management initiatives and strengthen its engagement with stakeholders to contribute to the achievement of the SDGs and a sustainable society.

Related Links

Kawasaki’s Sustainable Finance Master Framework (Japanese only)
https://www.khi.co.jp/pressrelease/news_231130-1.pdf

Kawasaki’s Sustainable Finance
https://global.kawasaki.com/en/corp/ir/finance/index.html

Kawasaki’s Group vision 2030
https://global.kawasaki.com/en/groupvision2030/