Policy and Basic Approach
- Business value
(economic value) - ×
- Social value
(non-financial value) - ＝
- Maximization of unitholder value
- Sustainability-Linked Bonds have conditions that depend on whether the prescribed sustainability target has been achieved
- They are a new initiative wherein the results of sustainability initiatives are reflected in the form of economic value, namely the bonds’ interest rate
- By achieving growth in both business and social value, these bonds will further advance the growth strategy of DHR—to maximize unitholder value
Overview of DHR Sustainability-Linked Bonds
Overview
| Name | 18th Unsecured Investment Corporation Bonds (Sustainability-Linked Bonds) (also referred to as “DHR Sustainability-Linked Bonds”) |
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|---|---|---|---|---|---|---|---|---|---|
| Issue date | May 25, 2022 | ||||||||
| Issue amount／Term | ¥4 billion／7 years | ||||||||
| SPT | DHR named on “A List” (highest recognition) in CDP Climate Change Program | ||||||||
| Interest rate |
Initial interest rate: 0.575% per annum (May 26, 2022–May 25, 2023) Interest rate after SPT assessment: Based on level of achievement as shown on the table below (on and after May 26, 2023)
|
- Sustainability Performance Target (SPT): A prescribed sustainability-related target.
Structure
Rate adjusted according to SPT judgment
Schedule of SPT judgments and adjustments to interest rates
