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Outline of Sustainability-Linked Bond

Name Fuyo General Lease Co., Ltd. No.27 unsecured corporate bonds (limited to corporate bonds with a special agreement on the same priority) (Sustainability-Linked Bond)
Issue duration 7 years
Issuance amount 10 billion yen
Issuing Conditions and Related Sustainability Performance Targets (SPTs)
  • 1.
    Renewable energy usage rate for group electricity consumption 50% or more (Maturity: July 2024)
  • 2.
    Cumulative amount of the Fuyo 100% Renewable Electricity Declaration Support Program, and the Fuyo Zero Carbon City Support Program 5 billion yen or higher (Maturity: July 2024)
Coupon rate 0.380% per annum from the day following December 24, 2020 to December 24, 2024.
From the day following December 24, 2024, a coupon step-up of 0.10% will be generated if any of the SPTs linked to the issue conditions have not been met on July 31, 2024.
Condition decision date December 18, 2020
Issue date December 24, 2020
Redemption date December 24, 2027
Ratings Japan Credit Rating Agency, Ltd. (JCR): A+
Rating and Investment Information, Inc. (R&I): A

Third-party Assessment of Eligibility

Ministry of the Environment's Model Case for Issuance

The Fuyo Lease Group's Sustainability-Linked Bond was selected as a model case for the fiscal 2020 Sustainability Linked Loans, etc. Issuance by the Ministry of the Environment, and on November 27th, 2020 it was announced that the Ministry of the Environment and certification bodies (Japan Credit Rating Agency, Ltd. and E&E Solutions Inc.) had verified the conformity of the framework for issuing of the Sustainability Linked Bond with the Ministry of the Environment's Green Loan and Sustainability Linked Loan Guidelines 2020 and the International Capital Markets Association's (ICMA) Sustainability-Linked Bond Principles.

Announcement of Investment in the Sustainability-Linked Bond

These are the investors who have announced that they will invest in the Sustainability-Linked Bond

List of investors who have announced investment (Japanese alphabetic order)

(As of December 18, 2020)

  • IO Shinkin Bank
  • AICHI CHITA AGRICULTURAL COOPERATIVE ASSOCIATION
  • Asset Management One Co., Ltd.
  • Awaji Shinkin Bank
  • Ishinomaki Shinkin Bank
  • Ibaraki Prefectural Credit Federation of Agricultural Cooperatives
  • Okayama Shinkin Bank
  • THE KANAGAWA BANK, LTD.
  • Kanonji Shinkin Bank
  • Gifu Prefectural Credit Federation of Agricultural Cooperatives
  • Kuwanamie Shinkin Bank
  • The 77 Bank, Ltd.
  • Shinonome Shinkin Bank
  • Shibata Shinkin Bank
  • Suwa Shinkin Bank
  • Seishin Shinkin Bank
  • Saison Automobile and Fire Insurance Co., Ltd.
  • Takanabe Shinkin Bank
  • Tajima Shinkin Bank
  • Danyo Shinyo Kumiai Bank
  • Choshi Shinkin Bank
  • Tokyo City Shinkin Bank
  • Tokyo Higashi Shinkin Bank
  • The Tono Shinkin Bank
  • The Toa Reinsurance Company, Limited
  • The Toyota Shinkin Bank
  • Nagano Shinkin Bank
  • Nagano Labour Bank
  • Nagoya Broadcasting Network Co., Ltd.
  • Nishihyogo Shinkin Bank
  • Nishimikawa Agricultural Cooperative
  • Nissay Asset Management Corporation
  • Hagi Yamaguchi Shinkin Bank
  • Hamamatsu Iwata Shinkin BankOpen in new window
  • Handa Shinkin Bank
  • Hanno-Shinkin Bank
  • Hyogo Shinkin Bank
  • Hiratsuka Shinkin Bank
  • Fukoku Mutual Life Insurance Company
  • BlackRock Japan Co., Ltd.
  • The Hekikai Shinkin Bank
  • Mie Prefectural Credit Federation of Agricultural Cooperatives
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.Open in new window
  • The Miyazaki Taiyo Bank, Ltd.
  • Moka Credit Union
  • The Yuki Shinkin Bank
  • Yokohama Agricultural Cooperative
  • Lifenet Insurance Company
  • Wakayama Prefectural Credit Federation of Agricultural Cooperatives

Reporting

SPTs and Status of Progress on Targets

SPT 1 Renewable energy usage rate for group electricity consumption 50% or more (Maturity: July 2024)

In participating in RE100, Fuyo General Lease has set a target of 50% renewable energy use for the Group by 2030 and 100% by 2050. However, under SPT (1) for this sustainability linked bond, we have brought forward the medium-term target achievement timing to renewable energy use of 50% by July 2024.*1 Most of the Fuyo Lease Group's electricity consumption takes place among tenants of its office buildings. The Company is cooperating with the building owner of its head office building and with retail electricity providers to develop a new method for realizing effective transition to renewable energy for tenants.*2 In fiscal 2021, the Group’s head office switched to being powered by renewable energies, and carrying on from this, multiple business sites in Japan also switched to renewable energies in fiscal 2022. Going forward, we will continue to work to achieve medium-term targets by switching to renewable energy at various business sites.

Status of Progress

Renewable energy usage rate for group electricity consumption: 35.8% (as of September 30, 2022)

  • *1
    In July 2021, we brought the target forward again, so that the current target is “50% by 2024, 100% by 2030.”
  • *2
    Relevant press release:“Individual Office Building Tenants Switch to RE100 Compliant Electricity from Solar Power Station at Namie, Fukushima Prefecture, which is Working to Recover from the Great East Japan Earthquake” (In Japanese only)
Environmental value (Zero CO₂ emissions) to JEPX (Non-fossil fuel value trading market) from Fuyo Lease Group “Namie Sakai Solar Power Plant 1” (Namie, Fukushima) . FIT non-fossil fuel certificate with tracking to TEPCO Energy Partner from JEPX (Non-fossil fuel value trading market) from Ordinary electricity to Other power plants. Ordinary electricity to TEPCO Energy Partner from Other power plants. Environmental value flow and electricity flow to Sumitomo Fudosan Kojimachi Garden Tower (Chiyoda Ward, Tokyo) from TEPCO Energy Partner. RE100 compliant electricity (Fuyo Lease’s usage) to FUYO LEASE GROUP (16th floor-20th floor) from Sumitomo Fudosan Kojimachi Garden Tower (Chiyoda Ward, Tokyo). Ordinary electricity to Common area of building Other tenants from Sumitomo Fudosan Kojimachi Garden Tower (Chiyoda Ward, Tokyo). *JEPX: Japan Electric Power Exchange Non-fossil fuel certificates are for electricity sold through JEPX. Purchase is available only through retail electricity providers.

SPT 2 Cumulative amount of the Fuyo 100% Renewable Electricity Declaration Support Program, and the Fuyo Zero Carbon City Support Program 5 billion yen or higher (Maturity: July 2024)

The second SPT is a target for the cumulative handling amount of the Fuyo 100% Renewable Electricity Declaration Support Program, and theFuyo Zero Carbon City Support Program of 5 billion yen or higher by 2024. The Fuyo Zero Carbon City Support Program uses green bonds and other sources of funds raised by the Company to provide financial support to customers who are introducing properties that contribute to renewable energy and energy conservation. To date, it has been used by customers representing more than 300 organizations located in 36 prefectures throughout Japan. As of September 30, 2022, the handling amount for both programs reached a cumulative total of 8.71 billion yen, achieving the target. Moreover, under the Medium-Term Management Plan Fuyo Shared Value 2026, which started in fiscal 2022, we are aiming for a cumulative handling amount for both programs of 12 billion yen (fiscal 2022 to fiscal 2026) as one non-financial target. We will continue to advance both programs to actively support companies and local governments that are engaged in decarbonization.

ESG Investors→Green Bonds→[Fuyo 100% Renewable Electricity Declaration Support Program]→①Major corporations②Small and mediumsized companies and organizations③Companies and organizations in the area of zero-carbon cities ESG Investors→Green Bonds→[Fuyo Zero Carbon City Support Program]→Donate a portion of lease contract value (Foundations, incorporated associations,NPOs,etc.) or①Major corporations②Small and mediumsized companies and organizations③Companies and organizations in the area of zero-carbon cities
Status of Progress

Cumulative amount: 8.71 billion yen (as of March 31, 2022) <Achieved target>