Aozora's Impactful ESG Finance

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by KnowESG,

Aozora Bank Ltd

KnowESG_Aozora Bank's positive impact finance
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Aozora Bank, Ltd., led by President and CEO Kei Tanikawa, headquartered in Tokyo, has recently entered into a significant agreement with Ichigo Inc., headed by President Takuma Hasegawa, also based in Tokyo.

The collaboration entails the creation of a groundbreaking "Syndicated Positive Impact Finance based on Aozora's ESG Framework Loan".

This innovative approach to Positive Impact Finance (PIF) aims to thoroughly assess and evaluate the environmental, social, and economic effects of corporate activities of customers. The primary goal is to provide unwavering support for projects that foster positive impacts or minimise negative consequences.

Aozora's ESG Framework Loan is strategically designed to bolster customers' sustainable finance endeavours. The initiative gained further credibility when, on June 1, 2022, it received a favourable second opinion from Rating and Investment Information, Inc., confirming its alignment with international principles and requirements.

Moreover, in June 2023, "Aozora Positive Impact Finance" obtained a second opinion from the same agency, certifying the Bank's PIF assessment system's compliance with the PIF Principles set forth by the United Nations Environment Programme Finance Initiative (UNEP FI). This Financing marks Aozora's inaugural syndicated loan venture based on "Aozora Positive Impact Finance."

Recognising the criticality of the environmental impact resulting from their real estate business, the Ichigo Group is dedicated to addressing this concern as a core operational priority. The company diligently pursues a "sustainable infrastructure" approach centred around its Sustainable Real Estate business, which strives to extend building lifespans beyond 100 years, contributing to a sustainable society.

The Financing, in turn, aims to lend vital support to the Ichigo Group's vision as a "sustainable infrastructure company." Aligning with its new Mid-term Plan "Aozora 2025" (FY2023–25), unveiled on May 17, 2023, Aozora Bank has made the "Promotion of Aozora Sustainability" a primary focus area.

The Bank is dedicated to advancing climate change responses by empowering customers in its sustainable finance pursuits. This concerted effort underlines Aozora's commitment to driving positive change and environmental stewardship.

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Source: Aozora Bank


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