Social Loans
In February 2022, Yasuda Logistics entered into a contract to raise a total of 15 billion yen through a subordinated loan (hybrid loan).
6 of the 15 billion yen is a social loan aimed at solving social issues. This is the first example of such a hybrid loan in Japan.
Social loans are loans made in accordance with the Social Loan Principle to finance projects that contribute to solving and mitigating social issues.
Received “Social 1” rating
We will use the 6 billion yen as a social loan to repay existing interest-bearing debt for expenses previously contributed as related expenses for the Company’s Shinonome Logistics Center (Tokyo Medical Logistics Center I). We have received “Social 1” rating, which is the highest rating awarded in the JCR Social Loan Evaluation performed by Japan Credit Rating Agency, Ltd. (“JCR”).
The Yasuda Logistics Group has identified that the creation of an optimal social environment through the provision of high-quality and safe services is a material issue to be solved as a priority for the realization of a sustainable society and the continued development of the Yasuda Logistics Group. Solving medical issues through medical logistics is one of the initiatives for solving this material issue.
Shinonome Logistics Center (Tokyo Medical Logistics Center I)
Shinonome Logistics Center
(Tokyo Medical Logistics Center)
Shinonome Logistics Center (Tokyo Medical Logistics Center I), located in the Tokyo Bay Area, has excellent access to central Tokyo and Haneda Airport, and handles medical equipment for a wide range of fields. It has temperature zone facilities for the proper storage of medical equipment, emergency power generation equipment, and advanced security systems, etc. for ensuring the uninterrupted supply of medical services so that its logistics operations can continue even in times of emergency such as disasters and pandemics. We also contribute to building safe and secure medical infrastructure for patients with diseases, improving the management efficiency of medical equipment manufacturers, and reducing the workload of medical professionals by providing a comprehensive one-stop service for medical equipment, which enables us to perform equipment inspections and provide prompt repair and cleaning services.
We will maintain and expand our supply network of pharmaceuticals and medical equipment and reduce the burden on medical professionals by continuously building high-quality supply chains and providing high-value-added logistics services, thereby contributing to protecting people’s lives and health.
Sustainability Linked Loan
In November 2023, Yasuda Logistics entered into a sustainability-linked loan contract through syndication.
A sustainability-linked loan is a loan that aims to provide borrowers with incentives to achieve their goals and to promote and support sustainable economic activity and growth in environmental and social aspects by setting important targets (Sustainability Performance Targets; “SPT”) in a borrower’s ESG strategy and linking borrowing conditions, such as interest rates, to achieving the SPT.
Purpose and Significance of Fundraising
The Yasuda Logistics Group has identified contributing to a low-carbon, recycling-oriented society as one of its material issues. In June 2023, the Yasuda Logistics Group’s set the following targets for reducing CO₂ emissions.
The Yasuda Logistics Group’s Targets for Reducing CO₂ Emissions
- Scope1+2: Achieve a 30% reduction compared to FY2022 levels by FY2030
- Scope3: Implement efforts to reduce emissions throughout the supply chain
- Target Companies: Yasuda Logistics Corporation’s domestic branches and 14 domestic group companies(Note)
Note: Yasuda Logistics Corporation (domestic branches), Yasuda Works Co., Ltd., The Hokkai Yasuda Warehouse Co., Ltd., Yasuda Transportation Co. Ltd., Fuyo Air Cargo Co., Ltd., Japan Business Logistics Co., Ltd., Yasuda Medical Logistics Co., Ltd., Y’s Plus One Co., Ltd, Onishi Logistics Co., Ltd., Onishi Crane and Transport Co., Ltd., Nanshinkamotsu Transport Co., Ltd., Powered L Com Co., Ltd., Jonan Transport Co., Ltd., Lupina Car Service Co., Ltd., and Yasuda Estate Service Co., Ltd.
In order to further promote efforts to achieve our targets, we have decided to raise funds through this loan by setting the SPT to achieving a 30% reduction in the CO₂ emissions of the Yasuda Logistics Group compared to FY2022 levels by FY2030 (Scope 1 + Scope 2), which is linked to the aforementioned targets.
We have established a Sustainability Linked Finance Framework and received a third-party opinion* from the Japan Credit Rating Agency (JCR), a third-party assessment organization, on conformity with the Sustainability Linked Loan Principles established by the Loan Market Association, etc. and the Green Loan and Sustainability-Linked Loan Guidelines established by the Ministry of the Environment (the Ministry of the Environment Guidelines) and on the rationality of the targets we have set.
*Please refer to the assessment report by the Japan Credit Rating Agency (JCR).
https://www.jcr.co.jp/ratinglist/corp/9324
Loan Overview
| (1) Fundraising amount |
14.5 billion yen |
| (2) Use of funds |
Long-term operating funds, equipment funds, refinancing funds |
| (3) SPT |
Achieve a 30% reduction in the CO₂ emissions of the Yasuda Logistics Group compared to FY2022 levels by FY2030 (Scope1+Scope2) |
| (4) Contract date |
November 28, 2023 |
| (5) Execution date |
November 30, 2023 |
| (6) Final repayment date |
November 30, 2033 (Contract period: 10 years) |
| (7) Arranger and agent |
Mizuho Bank, Ltd. |
| (8) Lenders |
The Ogaki Kyoritsu Bank, Ltd., The Shikoku Bank, Ltd., The Shonai Bank, Ltd., Chiba Kogyo Bank, Ltd., Development Bank of Japan Inc., The Norinchukin Bank, The Higo Bank, Ltd., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Michinoku Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Yokohama, Ltd., and others. |