Sustainable Finance

The Kirin Group executes Kirin Sustainable Finance based on the “Kirin Sustainable Finance Framework” to raise funds to promote CSV management. The funds are used to address social issues in "A Responsible Alcohol Producer," "Health and Well-Being," "Community Engagement," and "The Environment" based on the CSV Purpose, and by communicating the status of their use, we aim to further promote the Kirin Group CSV management and solve social issues.

In executing Kirin Sustainable Finance, we have developed this Framework based on the following principles and guidelines*, and have obtained a second party opinion from DNV BUSINESS ASSURANCE JAPAN K.K. ("DNV"), an independent external reviewer for its conformity.

  • Principles/Guidelines
  • ICMA Green Bond Principles 2021
  • ICMA Social Bond Principles 2021
  • ICMA Sustainability Bond Guidelines 2021
  • ICMA Sustainability-Linked Bond Principles 2020
  • ICMA Climate Transition Finance Handbook 2020
  • Ministry of the Environment, Green Bond and Sustainability-Linked Bond Guidelines 2022
  • Ministry of the Environment, Green Loan and Sustainability-Linked Loan Guidelines 2022
  • Financial Services Agency; Ministry of Economy, Trade and Industry; and Ministry of the Environment, Japan Basic Guidelines on Climate Transition Finance May 2021
  • Financial Services Agency, Social Bond Guideline October 2021
  • LMA; APLMA; LSTA, Green Loan Principles 2021
  • LMA; APLMA; LSTA, Social Loan Principles 2021
  • LMA; APLMA; LSTA, Sustainability-Linked Loan Principles 2022

Overview

  1. Official name

Transition-Linked Loan
  1. Borrower

Kirin Holdings Company, Limited
  1. Loan amount

50 billion yen
  1. Loan execution

January 18, 2023
  1. Loan term

10 years
  1. Structuring agent

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
  1. External reviewer

DNV BUSINESS ASSURANCE JAPAN K.K.
  1. Lender

MUFG Bank, Ltd.
  1. KPI

GHG emission reduction rate in Scope 1 and Scope 2 (Base year: FY2019)
  1. SPT(Sustainability Performance Target)

50% reduction in GHG emissions in FY2030 (Base year: FY2019)
*Multiple SPTs have been set over the loan period based on the above SPTs and the interest subsidy scheme of the Ministry of Economy, Trade and Industry.
  1. Loan characteristics

An interest subsidy of up to 0.2% will be granted by the government if the SPT is achieved.

*ANNEX Second Party Opinion

  1. A Transition-linked loan is a form of financing that enables borrowers taking climate actions to use the proceeds to fund their activities aiming to reduce GHG emissions in alignment with their long-term strategy toward realizing a decarbonized society.
    The financing instrument requires to set Sustainability Performance Targets (SPTs) which are in line with Paris-aligned mid-to-long term transition strategy of borrowers and the financial/structural characteristics of it may vary depending on whether the pre-defined SPTs are achieved.

CSV Management