Mizuho Bank, Ltd. (President & CEO: Koji Fujiwara) has entered into a contract to provide a green loan to ITOCHU Treasury Centre Europe Plc, which provides group financing services to ITOCHU Corporation's subsidiaries in Europe and the Middle East. This is the first green financing transaction provided to a Japanese Company Group in Europe by Mizuho Bank, Ltd.
Green loans are provided on the condition that their funds are used for environment–conscious projects. ESG considerations have become an important issue for management as companies face a changing business environment. This loan agreement was reached through discussion and planning with ITOCHU Europe Plc, the regional headquarters of ITOCHU Corporation Group in Europe, and ITOCHU Treasury Centre Europe Plc, focussing on green loans and other environment–conscious financing options.
The funds from this loan will be managed based under the “ITOCHU Europe Green Finance Framework”, which has acquired external confirmation of compliance with the Green Loan Principles (*), and has been utilised for eight green projects in five European countries through affiliated companies of ITOCHU Europe Plc.
As a financial services consulting group, Mizuho is committed to strengthening the promotion of sustainability, and improving integrity with our strategy across a variety of fields, including social and environmental issues. We will achieve this via the provision of our broad range of innovative financial solutions, supporting clients with financing that contributes to the United Nations' sustainable development goals (SDGs).
Borrower: ITOCHU Treasury Centre Europe Plc
Borrowing amount: EURO 100 million
Date of the loan agreement: March 25, 2019
Date of drawdown: March 27, 2019
(*) Green Loan Principles
International guidelines established by the United Kingdom's Loan Market Association and the Hong Kong–headquartered Asia Pacific Loan Market Association in March 2018 to clarify the process for capital–raising and investment for projects with environmental benefits. Published in an extended iteration by the two associations above and the United States' Loan Syndication and Trading Association in December 2018.