Heiwa Real Estate's Commitment to Sustainable Finance with New SLL Initiative

Heiwa Real Estate's Sustainable Finance Strategy

Heiwa Real Estate Co., Ltd., headquartered in Chuo-ku, Tokyo, is taking significant steps towards sustainable management by promoting sustainable finance. The company's latest initiative involves signing a new Sustainability-Linked Loan (SLL), which is designed to encourage borrowers to achieve ambitious sustainability performance targets (SPT), thereby linking loan conditions to their progress.

What is a Sustainability-Linked Loan (SLL)?

The SLL framework operates on the principle of incentivizing borrowers based on their sustainability goals. By establishing specific performance targets that align with the company’s management strategies, the SLL provides motivation for businesses to engage in sustainable practices. The loan conditions, such as interest rates, are adjusted based on the achievement of these sustainability targets.

For Heiwa Real Estate, the SLL signifies not just a financing option but a commitment to enhancing sustainable management practices and transparency in financial disclosures. The company aims to further elevate its sustainability initiatives while ensuring open communication regarding financial performance.

Key Details of the SLL Initiative

- Effective Date: March 2026
- Lender: Mitsubishi UFJ Bank
- Sustainable Performance Target (SPT): Maintain a CDP (Climate Change) score of A- or higher during the evaluation period.

The SLL has received a third-party validation from the Japan Credit Rating Agency, confirming its alignment with the Sustainability-Linked Loan Principles.

The Broader Context of Sustainability Management

In recent years, Heiwa Real Estate has recognized the necessity to respond to various management challenges, such as the need for disaster risk management, advancements in corporate governance, and heightened awareness of ESG and SDGs. As the surrounding business environment evolves, the company acknowledges the need for flexible adaptation while continuing to enhance corporate value.

Heiwa aims to leverage sustainable management strategies to effectively respond to environmental changes and seize business opportunities in the evolving landscape of a 'new normal'. The company is committed to addressing social issues and contributing to the Sustainable Development Goals (SDGs) through its corporate activities.

Commitment to SDGs and Stakeholder Engagement

As a “Bazukuri Company,” Heiwa Real Estate is dedicated to tackling environmental and social challenges. The firm is focused on enhancing satisfaction levels through two-way communication with stakeholders, thereby contributing to the realization of a sustainable society.

Vision for City Development: Nihonbashi Kabuto-cho and Kayabacho

Heiwa Real Estate is also invested in the urban development vision for the Nihonbashi Kabuto-cho and Kayabacho areas, aspiring to create vibrant spaces that enhance community living. The projects include collaboration with various city information platforms such as Kontext, Kabuto LIVE!, and FinGATE.

About Heiwa Real Estate Co., Ltd.

Established in July 1947, Heiwa Real Estate has played a crucial role in the Japanese financial markets as the owner of several major securities exchange buildings located in Tokyo, Osaka, Nagoya, and Fukuoka. The company emphasizes the underlying value of creating dynamic spaces that attract people and contribute to a prosperous future. Together, the Heiwa group is committed to delivering captivating environments to foster community engagement.