【Kyoto Bank】Regarding Fundraising through "Sustainability-Linked Loan"

MIRARTH Holdings Co., Ltd. (Head Office: Chiyoda-ku, Tokyo / Representative Director: Kazuichi Shimada) is pleased to announce that it has procured funds through a "Sustainability-Linked Loan" (hereinafter "SLL") from The Bank of Kyoto, Ltd. (Head Office: Kyoto City, Kyoto Prefecture / Representative Director and President: Mikiya Yasui).

This agreement utilizes the Sustainability-Linked Loan Framework formulated by our company.

Overview of Sustainability-Linked Loans

SLLs are loans that select and set Key Performance Indicators (KPIs) aligned with the borrower's main management strategies and Sustainability Performance Targets (SPTs), which are the targets for these initiatives. Depending on the achievement status of the SPTs, incentives are provided to the borrower, promoting the advancement of sustainability management.

This agreement was concluded using the "MIRARTH Holdings Group Sustainability-Linked Loan Framework" formulated in March 2025.

The execution of this SLL is positioned as fundraising to solve social issues and promote the SDGs of our group, and we believe it will be an opportunity to re-communicate our group's initiatives to all stakeholders. Moving forward, we will continue to promote our group's business activities and initiatives to address material issues through the execution of SLLs.

(1) Overview of Fundraising

(2) Overview of KPI/SPTs

KPI: Reduction rate of greenhouse gas emissions (Scope 1, 2) for the entire group (compared to FY2022)

SPTs: Annual targets aligned with a 70% reduction in MIRARTH Holdings Group's greenhouse gas emissions (Scope 1, 2) by FY2030 (compared to FY2022)

▼MIRARTH Holdings Group Sustainability-Linked Loan Framework

https://mirarth.co.jp/news/pdf/64f76d8c93bd90fd02d0806763cf8950425ff643.pdf

▼Third-Party Opinion on Conformity to Sustainability-Linked Loan Principles, etc.

https://www.jcr.co.jp/download/d7c939c73e7f2ffb9fc5ced451c3718fd5b77859e3cc1c52bb/24d1810.pdf

MIRARTH Holdings Group's Initiatives for Achieving SDGs

Our group has set "Designing a sustainable environment to make the future of people and the earth happy" as Our Purpose, and we aim to contribute to solving social issues and achieving SDGs by engaging in sustainability activities through our businesses, such as housing supply and renewable energy development.
Takaraleben, which is mainly responsible for the core real estate business, was selected as the prospective developer for the "Chuo Ward Sakuragawa Park Public-Private Partnership Project (Park-PFI Project)" publicly solicited by Chuo Ward, Tokyo. In Ukiha City, Fukuoka Prefecture, we opened "UKIHA RIVERCAMP," a campsite utilizing a former school, promoting regional revitalization efforts throughout Japan. We are also actively participating in redevelopment and rebuilding projects in Odawara City, Kanagawa Prefecture, Takaoka City, Toyama Prefecture, and Fukui City, Fukui Prefecture, aiming to increase "urban living" and attract visitors to city centers, serving as a starting point for residents and visitors to circulate, and contributing to the revitalization of city centers.
Regarding the energy business, since entering the mega-solar business in 2013, our power generation scale has expanded year by year, and we also entered the biomass power generation business and wind power generation business in 2021. MIRARTH Energy Solutions, which is central to the energy business, established a local subsidiary in Cambodia in February 2024 and has begun research into cashew nut processing in Cambodia and biomass fuel conversion using cashew nut shells, promoting initiatives that aim for coexistence with local communities while expanding business areas.
Furthermore, in response to climate change, we have set medium- to long-term targets for reducing greenhouse gas emissions: "45% reduction by FY2030 (compared to FY2022) and net-zero by FY2050*."

We will continue to support and promote group-wide initiatives for achieving SDGs and strive to realize a sustainable society.

*Press release issued on March 29, 2024: "Notice of Revision of Medium- to Long-Term Targets for Reducing Greenhouse Gas Emissions ~Promoting Initiatives Towards Achieving Carbon Neutrality by 2050~"