Transition-Link Loan (August, 2022)Investor Relations / ESG Finance

Transition-Link Loan (August, 2022)

An overview of the borrowing is given as well as Transition Bond Framework and a third-party assessment of eligibility.

Overview of Borrowing

JERA raised funds from Development Bank of Japan Inc. through a Transition-Link Loan* on August 31, 2022.

JERA has set “Reduce carbon emission intensity by 20% compared to that of thermal power plants in Japan as a whole, based on the long-term energy supply and demand outlook for FY2030 set by the government” as a target in “JERA Environmental Target 2030”. The loan‘s Sustainability Performance Target (SPT) is set at a value of 0.477 kg- CO2/kWh or less which is JERA’s emissions intensity target by FY 2030 calculated using the latest government‘s long-term energy supply-demand outlook.

• A transition-link loan is one which links the borrower's performance against a pre-set SPT with loan terms and conditions, etc., in a transition loan framework, which is intended to support companies working to reduce greenhouse gas emissions in accordance with a long-term transition strategy to realize a decarbonized society.

Framework

In executing the Transition-Link Loan, the transition bond framework, which was revised in May 2022, has been updated to accommodate transition finance with General Corporate Purpose instruments etc. This update was supported by Development Bank of Japan Inc., the transition structuring agent for the loan.

Framework[1.16MB]

Third-party Assessment of Eligibility

DNV Business Assurance Japan K.K., a third-party assessment agency, has conducted an assessment to evaluate compliance with various standards relating to the above framework.

Third-party assessment report[2.57MB]

• Please refer to the ESG Finance top page for our latest framework and third-party assessment of eligibility.