Transition-Link Loan (April, 2023)Investor Relations/ ESG finance

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

Overview of Borrowing

JERA raised a total of 17.6 billion yen through a syndicated Transition-Link Loan* arranged by SBI Shinsei Bank, Limited on April 28, 2023. The loan was co-financed by a total of 10 banks: SBI Shinsei Bank, Kagawa Bank, Kanagawa Bank, Kirayaka Bank, Shonai Bank, Taiko Bank, Tokushima Taisho Bank, Nagano Bank, Hokuto Bank and Resona Bank (in Japanese alphabetical order).

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.

The loan has been evaluated for compliance with Climate Transition Finance Handbook and Sustainability-Link Loan Principles by the Assessment Department, the Sustainable Impact Development Division, SBI Shinsei Bank, Limited.

Framework

The Transition-Link Loan has been executed based on Transition Finance Framework, which was updated in August 2022.

Framework[1.16MB]

  • Due to the organizational change in April 2023, “Finance Group” in the framework text should be replaced "Global Finance Group“ and "Head of the Finance Group" should be replaced by "Head of the Global Finance Group“.

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.