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.
- 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
- Official name
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Transition-Linked Loan
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- Borrower
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Kirin Holdings Company, Limited
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- Loan amount
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50 billion yen
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- Loan execution
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January 18, 2023
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- Loan term
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10 years
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- Structuring agent
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Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
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- External reviewer
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DNV BUSINESS ASSURANCE JAPAN K.K.
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- Lender
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MUFG Bank, Ltd.
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- KPI
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GHG emission reduction rate in Scope 1 and Scope 2 (Base year: FY2019)
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- SPT(Sustainability Performance Target)
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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.
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- Loan characteristics
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An interest subsidy of up to 0.2% will be granted by the government if the SPT is achieved.
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*ANNEX Second Party Opinion
- 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.
Overview
- Official name
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Kirin Holdings Company, Limited 21st unsecured straight bonds (Social bond with specific inter-bond pari passu clause, “Kirin Holdings Social Bonds” for short)
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- Total issue amount
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JPY 20.0 billion
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- Term
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5-years
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- Coupon
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0.290%
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- Issue date
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June 7, 2022
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- Maturity date
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June 7, 2027
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- Interest Payment date
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June 7 and December 7 of each year
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- Credit rating
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A+(Rating and Investment Information, Inc.)
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- Use of Proceed
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- Capital investment, operation, and procurement of raw materials contributing to the production of Human Milk Oligosaccharide (HMO)
- Capital investment, operation, and procurement of raw materials contributing to the production of Citicoline
- Capital investment, operation, and procurement of raw materials contributing to the research and development of Lc-PLASMA and the production of raw material powder utilizing Lc-PLASMA
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*Kirin Sustainable Finance Framework (March 2022)
*Second Party Opinion (March 2022)
Investment Statement on Kirin Holdings Social Bonds
Listed below in Japanese alphabetical order are investors who declared their intention to invest in Kirin Holdings Social Bond and agreed to disclose their names as of June 1, 2022.
- Aoi Mori Shinkin Bank
- Asset Management One Co., Ltd.
- The Awa Bank,Ltd.
- Ishikawa Prefectural Credit Agricultural Cooperative Association
- The Ichii Shinkin Bank
- NN Life Insurance Co., Ltd.
- THE OITA BANK, LTD.
- GUNMAMIRAI Shinkumi Bank
- KOITO MANUFACTURING CO., LTD.
- JA BANK SHIZUOKA
- Shinkin Central Bank
- Suwa Shinkin Bank
- The Dai-ichi Frontier Life Insurance Co.,Ltd.
- The Takinogawa Shinkin Bank
- Tokio Marine Asset Management Co., Ltd.
- Tokio Marine & Nichido Fire Insurance Co., Ltd.
- The TONO SHINKIN BANK.
- THE HACHIJUNI BANK,LTD.
- HIGASHI-NIPPON BANK, Ltd.
- The Hokkaido Bank,Ltd.
- Sumitomo Mitsui Trust Asset Management Co.,LTD
- The Mitsubishi Economic Research Institute
- Mitsubishi UFJ Trust and Banking Corporation
- LIFENET INSURANCE COMPANY
Overview
- Official name
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Kirin Holdings Company, Limited 18th unsecured straight bonds (Green bonds with specific inter-bond pari passu clause, “Kirin Holdings Green Bonds” for short)
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- Total issue amount
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JPY 10.0 billion
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- Term
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5-years
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- Coupon
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0.110%
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- Issue date
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November 27, 2020
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- Maturity date
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November 27, 2025
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- Interest Payment date
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May 27 and November 27 of each year
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- Credit rating
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A+(Rating and Investment Information, Inc.
A3(Moody’s Japan K.K.)
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- Eligibility of green bond framework
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The issuer has obtained the second party opinion for the critera set forth by the International Capital Markets Association (ICMA)in its Green Bond Principles 2018 and by the Ministry of Environment of Japan in its Green Bond Guidelines 2020 from Sustainalytics, a leading international third-party verification provider ※1
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- Use of Proceed
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Procurement of recycled PET plastic and installation of heat pump systems in plans
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- Kirin Holdings Company, Limited. Green Bond Second-Party Opinion
Investment Statement on Kirin Holdings Green Bonds
Listed below in Japanese alphabetical order are investors who declared their intention of investment in the Kirin Holdings Green Bond and agreed to disclose their names as of November 20, 2020.
- The Aichi Bank, Ltd.
- Asset Management One Co., Ltd.
- NST Niigata Sogo Television Company Limited
- Cameron Hume Limited
- THE KYOTO CHUO SHINKIN BANK
- The 77 Bank, Ltd.
- SHINWA KEISO
- Jissen Women’s Educational Institute
- SUMITOMO LIFE INSURANCE COMPANY
- Seiwa Shinkumibank
- Tokyo Marine Asset Management Co., Ltd.
- Tokyo University of Agriculture Educational Corporation
- The TONO SHINKIN BANK.
- The Toa Reinsurance Company, Limited.
- Gakkohojin Nakamurasangyogakuen
- NIHON DENGI CO.,LTD.
- PineBridge Investments Japan Co., Ltd.
- HIROSE ELECTRIC CO.,LTD.
- The Fukui Bank, Ltd.
- MAX CO., LTD.
- Manulife Investment Management (Japan) Limited
- Mie Prefecture credit federation of agricultural cooperatives
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- Mitsubishi UFJ Trust and Banking Corporation
- Midori Life Insurance Co., Ltd.
- The Miyazaki Taiyo Bank, Ltd.
- Meiji Yasuda Asset Management Company Ltd.
- Meiji Yasuda Life Insurance Company
- THE YAMANASHI CHUO BANK,LTD.
Reporting
2021
2020