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Notice Regarding Syndicated Loan Execution

Sep 30, 2020

TechnoPro Holdings, Inc. has raised 10 billion yen through an ESG/SDG-based syndicated loan under the principles for Positive Impact Finance (“the Loan”) arranged by Sumitomo Mitsui Banking Corporation.

1. Objectives for procuring funds via the Loan

TechnoPro Holdings Inc. has established a commitment line to expand backup lines of credit, anticipating the spread and continued infection of COVID-19, as well as a global economic recession even after the end of the pandemic. The Company has also obtained an external credit rating to diversify and stabilize funding sources.

Through the Loan, the Company intends to extend the loan maturity and normalize annual debt servicing, with the part of procured funds utilized for additional working capital. In this way, the Company will ensure sufficient level of funds and improve financial cash flows. Excess cash on hand will be used to repay existing debt.

2. Overview of the Loan

Loan amount10 billion yen (5 billion yen x two tranches)
Drawdown dateSeptember 30, 2020
Maturity dateSeptember 30, 2025
Repayment methodFully amortizing payment
Collateral, guaranteesN/A
Use of fundsWorking capital
Arranger/AgentSumitomo Mitsui Banking Corporation
ParticipantsSumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., 14 other financial institutions

3. ESG/SDG-based syndicated loan under the principles for Positive Impact Finance

The Loan is a syndicated loan under the principles for Positive Impact Finance based on an evaluation of ESG and SDGs. This financial instrument reflects an analysis of the current status of initiatives and appropriate information disclosure, future initiatives, and examples of measures in response to initiatives. Sumitomo Mitsui Banking Corporation and the Japan Research Institute Limited have created original assessment standards, based upon which the financial institutions evaluate a company’s ESG-oriented initiatives, information disclosure, and contributions to the achievement of the SDGs. In addition, the Loan is a financial instrument conforming to the principles for Positive Impact Finance as defined by the UNEP Finance Initiative for the purpose of ongoing support of activities toward the achievement of sustainability management by reflecting a comprehensive analysis and evaluation of the environmental, social, and economic impact (positive and negative) of a company’s business activities.

TechnoPro Holdings Inc. was determined to operate at a very high level in terms of sustainability management, consideration for employees, corporate philosophy, and commitment to sustainability. The Company was recognized for incorporating satisfactory ESG initiatives and information disclosure in operation, as well as the Company’s strong motivation to contribute to the achievement of the SDGs through its businesses.

In addition, TechnoPro Holdings Inc. received a letter of conformance from DNV GL Business Assurance Japan K.K. confirming that the Loan conforms to the principles for Positive Impact Finance.

4. Future outlook

TechnoPro Holdings Inc. does not expect the Loan to have a material impact on its consolidated earnings.

Note:This document is provided for informational purpose only. If there are any discrepancies between this and the original, the original Japanese document prevails.