Sustainability 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.

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.

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	(January 2022) Financing through “Green Loan” 118KB

• 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.)

Sustainability Linked Loan

The Sustainability Linked Loan 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.

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. *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. *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.

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.