ORIX Bank's First Sustainable Loan Success

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by KnowESG
KnowESG_ORIX Bank's first sustainable Loan
Image courtesy of https://www.fujitsu.com/

ORIX Bank Corporation (ORIX Bank) announced the successful execution of its first sustainability-linked loan (SLL) to &Do Holdings Co., Ltd. (&Do HLD). This marks a significant milestone for ORIX Bank as it enters the realm of SLL.

SLL is a financing method that incentivises customers to engage in economic activities that contribute to building a sustainable society by offering improved terms, such as lower interest rates, based on their progress.

Collaborating with six regional financial institutions in Japan, ORIX Bank has executed a ¥2.7 billion to &Do HLD, leveraging its trust capabilities.

&Do HLD specialises in the House-Leaseback and Reverse Mortgage Guarantee businesses. With this SLL, the aim is to meet the growing financial needs of the ageing population in preparation for life after retirement.

If the predetermined goal is not achieved, &Do HLD will make a designated donation to an organisation focused on providing welfare services for the elderly.

This programme has received a positive assessment from Rating and Investment Information, Inc. (R&I), validating its compliance with SLL principles and guidelines.

Under its Sustainability Policy, ORIX Bank has identified "responding to an ageing society" as one of its top priorities. The bank actively supports loans that generate positive societal and environmental impacts.

ORIX Bank remains committed to addressing social challenges by backing corporate initiatives that contribute to the realisation of a sustainable society, including measures to combat climate change.

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Source: ORIX Bank

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