Sustainable Finance
MIRARTH HOLDINGS Group aims to further strengthen the Group's power generation business and contribute to the achievement of the SDGs, including “Goal 7: Affordable and Clean Energy,” by utilizing green loans, which limit the use of funds to environmentally friendly projects and sustainability finance, in which funds are raised based on ESG initiatives, information disclosure, and contributions to the achievement of the SDGs.
Sustainability-Linked Loan Framework formulation
In March 2025, the MIRARTH HOLDINGS Group established the MIRARTH HOLDINGS Group Sustainability-Linked Loan Framework. The framework is based on the Sustainability-Linked Loan Principles 2023 issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), the Loan Syndications and Trading Association (LSTA), as well as the 2024 Sustainability Linked-Loan Guidelines by Japan’s Ministry of the Environment. Its alignment with these principles has been verified through a third-party opinion from Japan Credit Rating Agency, Ltd. Under this framework, we will raise funds through sustainability-linked loans and promote initiatives that drive our Group's business activities and address our material issues.
- MIRARTH HOLDINGS Group Sustainability-Linked Loan Framework(Japanese text only)
- Third-Party Opinion on Compliance with the Sustainability Linked-Loan Principles and Related Guidelines.
Indicators Based on the Framework (KPI / SPTs)
| KPI | SPTs | ||
|---|---|---|---|
| KPI1 | Reduction rate of greenhouse gas emissions (Scope 1 and 2) from our Group's business activities, compared to FY2022 Unit: % |
SPT1 | Annual targets aligned with the goal of reducing our Group’s greenhouse gas emissions (Scope 1 and 2) by 70% by FY2030, compared to FY2022 |
| KPI2 | Reduction rate of greenhouse gas emissions (Scope 1, 2 and Scope 3) from our Group's business activities, compared to FY2022 Unit: % |
SPT2 | Annual targets aligned with the goal of reducing our Group’s greenhouse gas emissions (Scope 1, 2 and Scope 3) by 45% by FY2030, compared to FY2022 |
Green Loans
Green loans are loans used to finance domestic and international green projects. This financing is unique in that the use of the funds is limited to green projects such as renewable energy installations, energy efficiency improvements, and environmental protection.
In addition, Green Loans have mechanisms in place to ensure transparency through the tracking of funds and reporting after the loan is executed. MIRARTH HOLDINGS Group will contribute to the realization of a sustainable society using these green loans.
LUXENE HEIWADAI
Takara Leben Real Estate Investment Corporation procured funds through a “green loan” from a syndicate of lenders arranged by Sumitomo Mitsui Banking Corporation, based on the green finance framework established by the corporation.
The funds raised through the Green Loan will be used to repay long-term debt raised as part of the acquisition of LUXENA HEIWADAI (acquired on September 3, 2019). LUXENA HEIWADAI is a Green Qualified Asset as defined in the Green Finance Framework.
| Borrowing Date | August 31, 2023 |
| Lenders | A syndicate of lenders arranged by Sumitomo Mitsui Banking Corporation (Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., SBI Shinsei Bank, Limited, Sumitomo Mitsui Trust Bank, Limited, Aozora Bank, Ltd., Resona Bank, Limited, THE NISHI-NIPPON CITY BANK, LTD., The Hiroshima Bank, Ltd., The Kiyo Bank, Ltd., and The Iyo Bank, Ltd.) |
| Borrowings | 3.6 billion yen |
| Use of Funds | Repayment of long-term debt procured as part of the acquisition of LUXENA HEIWADAI |
Solar Power Generation Facilities
MIRARTH Energy Solutions obtained a second opinion from Rating and Investment Information, Inc. (R&I) on its suitability as a green loan, then concluded a syndicated term loan (underwriting method) financing agreement with Towa Bank, Ltd. and fundraising has been conducted. The proceeds from this green loan were used to finance the acquisition of approximately 5 MW of solar power plant facilities.
| Contract Date | December 25, 2023 |
| Arranger/Agent | The Towa Bank, Ltd. |
| Amount Raised | 2.3 billion yen |
| Use of Funds | Acquisition of a solar power generation facility of approx. 5MW |
| Second Opinion | Rating and Investment Information, Inc. (R&I) |
LEBEN SOLAR IWATE HACHIMANTAI Power Plant
MIRARTH HOLDINGS has raised funds through a syndicated “green loan” provided by Sumitomo Mitsui Trust Bank, Limited. In addition, the loan received the highest grade of “Green1” in the “JCR Green Loan Evaluation” conducted by Japan Credit Rating Agency, Ltd.
The funds procured through this Green Loan were used to finance the acquisition of a solar power generation facility, LEBEN Solar Iwate Hachimantai Power Plant (Hachimantai City, Iwate Prefecture).
| Contract Date | January 27, 2022 |
| Arranger/Agent | Sumitomo Mitsui Trust Bank |
| Composition | 3.8 billion yen |
| Use of Funds | Funds for acquisition of LEBEN SOLAR IWATE HACHIMANTAI Power Plant |
| Lenders | The Gunma Bank, Ltd., THE SAN-IN GODO BANK, LTD, The Nanto Bank, Ltd., The Hiroshima Bank, Ltd., Sumitomo Mitsui Trust Bank |
| Acquisition Rating | The highest grade “Green1” |
| News Release (Jan. 2022) |
Financing through "Green Loans" |
- Location: 495-1, Matsuo Yoriki No. 1 Chiwari, Hachimantai City, Iwate Prefecture
- Area: Approx. 34ha
- Power generation capacity: approx. 9.8MW
- Estimated annual power generation: approx. 9.76 million kWh
- Unit price of electricity sold: 36 yen/kWh
Environmental Improvement Effectiveness Reporting
- Period: January 2022 - January 2023
- * The plant will reduce CO₂ emissions by 4,583 tons per year, with an estimated power generation capacity of 9,338 MWh and a total power generation capacity of 9,499 MWh.
(The calculation method for CO₂ reduction is based on the calculation method and default values specified by the Ministry of the Environment.)
- Period: February 2023 - January 2024
- * The plant will reduce CO₂ emissions by 4,860 tons per year, with an estimated power generation capacity of 9,278MWh and a total power generation capacity of 10,201MWh.
(The calculation method for CO₂ reduction is based on the calculation method and default values specified by the Ministry of the Environment.)
- Period: February 2024 to January 2025
- * The plant will reduce CO₂ emissions by 4,422 tons per year, with an estimated power generation capacity of 9,231MWh and a total power generation capacity of 9,795MWh.
(The calculation method for CO₂ reduction is based on the calculation method and default values specified by the Ministry of the Environment.)
Sustainability-Linked Loans
Sustainability-Linked Loans aims to promote environmentally and socially sustainable economic activities and economic growth by setting Sustainability Performance Targets (SPTs)* based on the sustainability strategy and linking loan terms to the achievement of SPTs, thereby promoting motivation to achieve the targets.
- * SPTs (Sustainable Performance Targets): Ambitious targets that can be used to measure the degree of achievement with respect to the SDGs set by businesses.
Tsukuba Bank, Ltd
MIRARTH Energy Solutions signed a Sustainability Linked Loan financing agreement with Tsukuba Bank and raised funds in June 2023. The funds raised through this financing will be used to fund future projects that will lead to the achievement of sustainability.
| Contract Date | June 30, 2023 |
| Company Name | MIRARTH Energy Solutions Inc. |
| Loan Amount | 1 billion yen |
| Procurement Period | 10 years |
| Use of Funds | Future project funding tied to achieving sustainability |
The Towa Bank, Ltd.
MIRARTH Energy Solutions has obtained a second opinion from Rating and Investment Information, Inc. (R&I) to express its willingness to contribute to the achievement of its sustainability strategy through its business activities, and has concluded a “Sustainability Linked Loan” loan agreement with The Towa Bank, Ltd. The funds raised will be used to finance projects related to renewable energy development, etc.
| Contract Date | December 27, 2022 |
| Company Name | MIRARTH Energy Solutions Inc. |
| Loan Amount | 1 billion yen |
| Procurement Period | 10 years |
| Use of Funds | Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.) |
| SPTs | In terms of cumulative output (kW) of renewable energy power generation facilities developed in-house and through the acquisition of existing operating properties
|
| Second Opinion | Rating and Investment Information, Inc. (R&I) |
Positive Impact Finance
Positive Impact Finance is based on the Positive Impact Financing Principles (PIF Principles) *2 and their implementation guidelines formulated by the United Nations Environment Programme Finance Initiative (UNEP FI)*1 and is designed to comprehensively analyze and evaluate the impact of corporate activities on the environment, society and the economy (positive and negative impacts).
- *1 United Nations Environment Programme and Finance Initiative (UNEP FI): An organization based on an agreement between the United Nations Environment Programme (UNEP), a subsidiary body of the United Nations established to implement the Declaration on the Human Environment and the International Action Plan for the Environment, and financial institutions. Since its establishment in 1992, the organization has been working with financial institutions and policy and regulatory authorities to transform the financial system to one that integrates economic development and ESG considerations.
- *2 Positive Impact Finance Principles (PIF Principles): A financial framework for achieving the SDGs, developed by UNEP FI in January 2017. The KPIs disclose the contribution of companies to the achievement of the SDGs, and banks evaluate their positive impact and provide funding, leading to efforts by the recipient companies to increase their positive impact and reduce their negative impact. The bank executing the loan, as a responsible financial institution, will monitor the indicators to ensure that the impact is ongoing.
ORIX Bank Corporation
Takara Leben raised funds through Positive Impact Finance offered by ORIX Bank.
In connection with this financing, items with potential impact on the achievement of the SDGs were selected from the KPIs established based on MIRARTH HOLDINGS Group's material sustainability issues, and ORIX Bank conducted an evaluation. While the impact assessment was conducted on MIRARTH HOLDINGS, the proceeds will be used to fund the real estate liquidation business of Takara Leben, a group company.
In addition, the financing received a third-party evaluation from Rating and Investment Information, Inc. (R&I), confirming its alignment with the UNEPFI's PIF Principles.
| Borrower | Takara Leben Co., Ltd. |
| Loan Amount | 1.2 billion yen |
| Use of Funds | Real estate acquisition |
| Loan Term | 5 years |
The Towa Bank, Ltd.
MIRARTH Energy Solutions signed a Positive Impact Finance loan agreement with Towa Bank and raised capital.
For this agreement, metrics with potential impact on the achievement of the SDGs were selected from the KPIs formulated based on our Company's fundamental sustainability policy and evaluated by the bank.
In addition, this fundraising has received a third-party evaluation from Rating and Investment Information, Inc. (R&I) stating that it complies with the UNEP FI Principles for PIF.
The funds raised through this financing will be used as operating capital for future business initiatives that contributes to the promotion of sustainability.
| Contract Date | June 28, 2024 |
| Borrower | MIRARTH Energy Solutions Inc. |
| Loan Amount | 500 million yen |
| Use of Funds | Operating capital |
| Loan Term | 5 years |
MUFG Bank, Ltd
In September 2023, MIRARTH HOLDINGS raised funds through Positive Impact Financing provided by MUFG Bank, Ltd.
In entering into this agreement, the Group's business and materiality were primarily evaluated based on the Positive Impact Financing Framework, which was jointly developed by M MUFG Bank, Ltd and Mitsubishi UFJ Research and Consulting Co., Ltd.
The results of this evaluation have been assessed by Japan Credit Rating Agency, Ltd. (JCR) as being in conformity with the PIF Principles by UNEP FI.
| Composition Method | Syndicated Loan |
| Date of Execution | September 27, 2023 |
| Arranger/Agent | MUFG Bank, Ltd |
| Lender | 16 financial institutions |
The First Bank of Toyama,Ltd.
MIRARTH HOLDINGS has raised funds through “First Positive Impact Financing” provided by The First Bank of Toyama, Ltd.
First Positive Impact Finance is a loan product that aims to expand positive impacts and mitigate negative impacts in the three aspects of corporate activities: the economy, the environment, and society. We regularly monitor the achievement status of KPIs (Key Performance Indicators) and initiatives set for these impacts.
The impact assessment will focus on the company as a whole, but the proceeds will be used to fund Takara Leben 's core business, the New built-for-sale condominium business.
The business processes of the implementation system have been confirmed by a second opinion from the Rating and Investment Information(s) (R&I) that the business processes of the implementation system are applied in accordance with the PIF principles.
Mizuho Sustainability Real Estate Non-Recourse Loan
In August 2024, MIRARTH Asset Management signed a loan agreement and secured financing under the Mizuho Sustainability Real Estate Non-Recourse Loan. The funds were used to acquire a residential property in Niigata City, Niigata Prefecture, as part of a project utilizing a private real estate fund established by MIRARTH Asset Management.
This loan utilizes Mizuho Bank's proprietary evaluation framework, developed in line with the intent of the Green Loan Principles and Social Loan Principles. The framework evaluates and certifies the environmental and social impacts of properties acquired and managed through the borrower’s real estate fund business, based on which a non-recourse real estate loan is provided.
In this case, the evaluation recognized the property's preparedness for disaster situations, including stockpiled emergency food supplies and portable toilets available for both residents and neighboring communities.
ESG Management Support Loan
The “ESG Management Support Loan” is an ESG evaluation-based loan product offered by MUFG Bank, Ltd. to support and assist companies in their ESG (Environmental, Social and Governance) initiatives.
MIRARTH HOLDINGS has procured financing through the “ESG Management Support Loan” provided by MUFG Bank, Ltd., and has also received a grade of A, which is a rating of “particularly advanced” in the MUFG ESG assessment conducted for the project.
The funds raised through this ESG Management Support Loan will be used for the development of the mega solar power generation business.
| News Release (Apr. 2022) |
Financing through "ESG Management Support Loans" |