- Purpose and Background of Procurement
- Green Finance Framework
- Overview of the first Green Loan
- Overview of the First Green Bond
- Sustainability-Linked Loan
Purpose and Background of Procurement
In June 2022, the Company announced the Carbon Neutrality Declaration 2050, committing to achieving net zero greenhouse gas (GHG) emissions from business activities by FY2050. At the same time, we identified six material issues that represent are priority issues for focused action.
To address these medium- to long-term targets and issues, we have been implementing the three-year medium-term management plan, New Challenge 2026 (NC2026), since April 2024, with the final fiscal year ending in March 2027.
Within NC2026, we have positioned the sustainability strategy to address the six material issues, setting priorities such as "achieving carbon neutrality in business activities" and "contributing to the global environment through the business." Specific targets include reducing GHG emission (Scope 1 and 2) by 25% compared to FY2022 levels by the end of FY2026 and achieving net sales of 100 billion yen for environment-related business.
In addition, as part of our financial strategy, we have set a goal of "diversifying fundraising methods, including sustainability finance."
Green Finance Framework
In issuing green bonds, we have developed a Green Finance Framework in accordance with guidelines such as the Green Bond Principles 2021 (ICMA). We have also obtained a second opinion from Rating and Investment Information, Inc. (R&I) confirming that the framework is aligned with these principles.
Overview of the first Green Loan
| Bond agreement date | July 25, 2024 |
|---|---|
| Lender | Nippon Life Insurance Company |
| Loan amount | 1 billion yen |
| Loan period | 10 years |
| Use of funds | Allocated for the construction (rebuilding) of the Tokyo Head Office building |
| Expected effect on improving environment | The project is expected to achieve the highest S rank under CASBEE certification*1 and the highest rating of 6 stars under BELS certification*2, and is anticipated to contribute to reductions in greenhouse gas (GHG) emissions. |
- *1 CASBEE is a system for comprehensively evaluating and rating the environmental performance of buildings. It was developed under the leadership of the Ministry of Land, Infrastructure, Transport and Tourism, primarily by the Institute for Built Environment and Carbon Neutral for SDGs (IBECs), and evaluates buildings using a four- to five-level rating scale.
- *2 BELS is a third-party certification system that rates the energy-saving performance of new and existing buildings on a five- to seven-level scale.
Overview of the First Green Bond
| Name | Inabata & Co., Ltd. 4th Unsecured Bond (Pari Passu clause) (Green Bond) |
|---|---|
| Issuance term | 5 years and 6 months |
| Total issuance amount | 7.5 billion yen |
| Interest rate | 1.354% |
| Issuance date | December 19, 2024 |
| Redemption date | June 19, 2030 |
| Use of funds |
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| Credit rating | A- (Rating and Investment Information, Inc. (R&I)) |
| Lead managing securities firms | Nomura Securities Co., Ltd., Mizuho Securities Co., Ltd., SMBC Nikko Securities Inc., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
| Structuring agent | Nomura Securities Co., Ltd. |
Sustainability-Linked Loan
In March 2026, the Company entered into a commitment line agreement in the form of a Sustainability-Linked Loan.
| Type of Facility | Commitment line agreement arranged through a syndicated structure |
|---|---|
| Arranger | Mizuho Bank, Ltd. |
| Participating Financial Institutions | Four financial institutions (including the arranger) |
| Loan Type | Sustainability-Linked Loan |
| Product | Mizuho Sustainability-Linked Loan PRO |
| Key Performance Indicator (KPI) | CDP Climate Change Score |
| Sustainability Performance Target (SPT) | To maintain a "Leadership Level" score (A or A−) in each fiscal year |