Sustainability Finance Initiatives
MIRARTH HOLDINGS Group aims to further strengthen its power generation business and contribute to achieving the goals of SDGs, including "Goal 7: Affordable and Clean Energy" by utilizing Green Loans, which limit the use of funds to projects that consider environmental factors, and Sustainability Finance, in which funds are raised based on the evaluation of ESG initiatives, information disclosure, and contribution to SDGs achievement, etc.
MIRARTH HOLDINGS has conducted fundraising through the syndication-style "Green Loan" provided by Sumitomo Mitsui Trust Bank. In addition, JCR Green Loan Evaluation by Japan Credit Rating Agency, Ltd. awarded us with the highest rating, "Green1," for this transaction.
The funds raised through this Green Loan have been allocated to the acquisition of a solar power generation facility, "Leben Solar Iwate Hachimantai Power Generation Facility (Hachimantai City, Iwate Prefecture)."
|Contract Date||January 27, 2022|
|Arranger/Agent||Sumitomo Mitsui Trust Bank, Limited|
|Origination Amount||3.8 billion yen|
|Use of Fund||Acquisition of Leben Solar Iwate Hachimantai Power Generation Facility|
|Loaners||The Gunma Bank, Ltd., The San-in Godo Bank, Ltd., The Nanto Bank, Ltd., The Hiroshima Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited|
|Rating for the Company||Green1 (Highest rating)|
|Fundraising through the Green Loan 297KB|
Outlines of Leben Solar Iwate Hachimantai Power Generation Facility
- Location: 495-1, Daiichi Chiwari, Matsuoyoriki, 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
Sustainability Linked Loan
Sustainability Linked Loans are designed to promote environmentally and socially sustainable economic activities and economic growth by setting Sustainability Performance Targets (SPTs)* based on sustainability strategies and linking loan terms to the achievement of SPTs, thereby motivating the achievement of the targets.
Leben Clean Energy, which is responsible for the Group's energy business division, obtained a second opinion from Rating and Investment Information, Inc. (R&I) to express its endorsement to contribute to the achievement of its sustainability strategy through its business activities, and concluded a "Sustainability Linked Loan" financing agreement with Towa Bank, and also raised funds. The funds raised will be used to finance projects related to renewable energy development, etc.
- *SPTs (Sustainable Performance Targets): Ambitious targets that allow businesses to measure their level of achievement with respect to the SDGs.
|Date of contract signing||December 27, 2022|
|Company Name||Leben Clean Energy Co., Ltd.|
|Loan amount||1 billion yen|
|Financing period||10 years|
|Use of Funds||Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.)|
|SPTs||In the 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.|
ESG Management Support Loan
"ESG Management Support Loan" is an ESG evaluation-based financing product provided by Mitsubishi UFJ Bank to support and assist companies in their ESG (Environmental, Social, and Governance) initiatives.
MIRARTH HOLDINGS has raised funds through the "ESG Management Support Loan" provided by Mitsubishi UFJ Bank and received an A rating in the MUFG ESG evaluation conducted for this transaction, indicating that we are "particularly advanced" in our ESG efforts.
The funds raised through this ESG Management Support Loan will be utilized to develop our mega solar power generation business.
|Fundraising through the ESG Management Support Loan 200KB|
ESG/SDGs Evaluation Syndication
MIRARTH HOLDINGS has raised funds through a syndicated loan based on the "ESG/SDGs Assessment Syndication" provided by Sumitomo Mitsui Banking Corporation under the "ESG/SDGs Assessment Syndication." The "ESG/SDGs Evaluation Syndication" is a loan product that evaluates a company's initiatives and information disclosure on ESG aspects and its contribution to the achievement of the SDGs based on original evaluation criteria developed by SMBC and the Japan Research Institute, and provides a return on the current analysis of the adequacy of initiatives and information disclosure, future issues and examples of initiatives to address the issues.
The results of this evaluation of our company were judged to be of a very high standard in "Corporate Philosophy and Commitment to Sustainability," "Provision of Environmentally Conscious Products and Services," and "Consideration for Local and Global Communities." The evaluation showed that the company has implemented a certain level of ESG initiatives and information disclosure in its corporate management, and that it is highly motivated to contribute to the achievement of the SDGs through its business.
The funds raised will be used for the business development of Leben Clean Energy, which is the energy business arm of our group.
|Fundraising Based on the ESG/SDGs Evaluation Syndication 194KB|
Business of Leben Clean Energy
Due to the increasing demand for renewable energy in Japan, Leben Clean Energy is developing a business model that is not dependent on the feed-in-tariff (FIT) system, with an eye to promoting on-site and off-site power purchase agreements (PPA) and regional microgrid concepts.
Chiba Bank SDGs Friends Loan
Leben Clean Energy, our Group company, has signed a loan agreement for "Chiba Bank SDGs Friends Loan" offered by the Chiba Bank.
The "Chiba Bank SDGs Friends Loan" is a loan program for businesses to apply the Sustainable Development Goals (SDGs) advocated by the United Nations to their own management. The unique "SDGs Check Sheet" enables visualization of the relationship between business activities and management issues and the SDGs.
We aim to further promote SDGs management by utilizing "Chiba Bank SDGs Friends Loan."
|Name||Chiba Bank SDGs Friends Loan|
|Issue Amount||100 million yen|
|Use of funds||Working capital|
|Use of funds||Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.)|
Positive Impact Finance
MIRARTH HOLDINGS has raised funds through "First Positive Impact Finance" provided by the First Bank of Toyama.
First Positive Impact Finance is a financing product designed to increase positive impact and mitigate negative impact in the economic, environmental, and social aspects of corporate activities. The status of achievement of KPIs (Key Performance Indicators) set for these impacts and the status of initiatives will be monitored on a regular basis.
The impact assessment will be conducted on MIRARTH HOLDINGS through the entire group, and the funds raised will be used to fund Takara Leben's core business, the new condominium business.
It has been confirmed by a second opinion of Rating and Investment Information, Inc. (R&I) that the business processes of the implementation system are applied in accordance with the PIF Principles.