Regarding Growth Investment and Enhancement of Corporate Value Utilizing "Green Loans"

Shinko Electric Co., Ltd. (Headquarters: Hakata-ku, Fukuoka, President and Representative Director: Hidetoshi Soeda) is pleased to announce that it has formulated a Green Loan Framework and obtained a second opinion from Rating and Investment Information, Inc. (R&I).

Background of Formulating the Green Loan Framework

Under its corporate philosophy of "Contributing to society with the best products and services," the Shinko Group is working to realize a sustainable society and enhance corporate value in the medium to long term by solving social issues through its business activities.

To promote these initiatives from a financial perspective, we considered the utilization of green loans.

A green loan is a loan that is executed after clarifying its framework, including the appropriateness and management methods, by limiting the use of funds to projects that contribute to environmental improvement. It is required to meet international principles and eligibility criteria to guarantee that the funds are for environmental purposes and to ensure transparency in their use.

Based on these principles, we formulated a Green Loan Framework and sought to ensure objectivity and reliability by obtaining a second opinion from Rating and Investment Information, Inc. as a third-party evaluation.

　● PDF of the Green Loan Framework formulated by Shinko Electric Co., Ltd.

　● PDF confirming the second opinion from Rating and Investment Information, Inc. (R&I)

R&I also publishes a list of companies for which credit ratings have been conducted on its website.

URL ： https://www.r-i.co.jp/rating/esg/greenfinance/index.html

Utilization of Financing through Green Loans

We are currently constructing the "Hibikino Research and Development Center" in the Hibikino Knowledge-city, where we will promote the development of cutting-edge products and technologies through industry-academia-government collaboration.

The funds raised through this green loan are planned to be used for the construction of the center and related capital investments. We aim to realize a local-production-for-local-consumption zero-energy building (ZEB) that incorporates energy creation, energy storage, and energy-saving equipment, and to promote the use of renewable energy-derived electricity through our unique energy storage system.

Initiatives for Enhancing Corporate Value through This Initiative

Through this initiative, we aim to strengthen our technological development capabilities and expand business opportunities in the decarbonization-related fields, while promoting the linkage between financial strategy and sustainability strategy through the utilization of green loans.

Furthermore, by ensuring transparency in the use of funds and obtaining third-party evaluations, we will promote the sophistication of ESG-conscious management, leading to improved credibility in the capital markets and an expanded investor base.

The Shinko Group will continue to work towards sustainable growth and enhancement of corporate value in the medium to long term through business activities that contribute to the realization of a decarbonized society.

About Shinko Electric Co., Ltd.

Founded in 1921, Shinko Electric Co., Ltd. has the corporate philosophy of "Contributing to society with the best products and services." We were honored to celebrate our 100th anniversary in 2021.

Leveraging our strengths in OT, IT, and products, we will continue to contribute to society through collaboration with various stakeholders.