Aozora Bank : Executes Syndicated Sustainability-Linked Loan Agreement

September 30, 2022

Aozora Bank, Ltd.

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Aozora Executes Syndicated Sustainability-Linked Loan Agreement

Tokyo September 30, 2022 ― Aozora Bank, Ltd. (President and CEO: Kei Tanikawa; Head Office: Tokyo) ("Aozora" or "the Bank") today announced that it has signed an agreement with Daiei Real Estate & Development Co., Ltd. (President and CEO: Hitoshi Ishimura; Head Office: Tokyo) ("Daiei Real Estate") regarding the formation of a syndicated sustainability-linked loan ("the Loan").

Sustainability-linked loans are loans intended to promote sustainable business activities and growth by establishing ambitious Sustainability Performance Targets ("SPTs") that are consistent with a borrower's sustainability strategies and aligning loan terms and conditions, including interest rates, with the achievement of SPTs, thereby motivating the borrower to achieve them.

Daiei Real Estate provides building rental services as its core business and also operates other businesses, including parking, housing, real estate sales and fee-based nursing home. Based on its corporate philosophy of "contributing to society and remaining attractive to customers", Daiei Real Estate continues to work on a range of initiatives aimed to realize a sustainable and better future while identifying climate change response as a priority issue and adopting a sustainability vision of "creating a better future by leveraging team capabilities - aim to become a company with a 100-year history, or even longer -".

Aozora shares Daiei Real Estate's philosophy and will utilize the Loan to support their initiatives.

Daiei Real Estate is committed to solving sustainability issues, in particular realizing "30% reduction in CO2 emissions" by 2030 in its rental office buildings. The SPTs established within the Loan are for Daiei Real Estate to "reduce CO2 emissions (intensity basis) of the subject facilities ((i) facilities subject to notification under the Act on Rationalizing Energy Use, and (ii) buildings subject to securitization to which the borrower has a substantial management title) by 30% by FY2030 (ending March 31, 2031) compared to FY2013 (ended March 31, 2014)".

The Loan has obtained a third-party opinion from Japan Credit Rating Agency, Ltd. regarding its conformity with the "Sustainability Linked Loan Principles" of the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA), as well as the "Green Loan and Sustainability Linked Loan Guidelines" developed by the Japanese Ministry of the Environment.

Aozora Bank Ltd. 6-1-1 Kojimachi, Chiyoda-Ku, Tokyo 102-8660, Japan ℡03-6752-1111

In order to "actively contribute to the sustainable growth of society" as outlined within its Management Philosophy's Key Priorities, Aozora strives to incorporate sustainability into all of the Group's financial services and activities as a business entity as well as promote initiatives while working closely with senior management.

Borrower:	Daiei Real Estate & Development Co., Ltd.
Loan amount:	7 billion yen
Agreement date:	September 30, 2022
Arrangers:	Aozora Bank, Ltd.
	Saitama Resona Bank, Limited

(Contact: Tsutomu Jimbo, Business Strategy Division 03-6752-1217)

Aozora Bank Ltd. 6-1-1 Kojimachi, Chiyoda-Ku, Tokyo 102-8660, Japan ℡03-6752-1111