To ESG Investors and Experts
Sustainability Finance
AEON MALL is a life Design Developer that works with communities and produces ways of living for the future. As a commercial developer, we develop, manage, and operate shopping malls, while we introduce a growing range of functions beyond the framework of the shopping mall that address each life stage of our individual customers. We foster interactions, cultural development, and make other positive contributions to future lifestyles.
In consideration of our responsibility as a company that creates the very lifestyles enjoyed by customers and to the expectations of society and stakeholders, in September 2020, we raise funds through the issuance of Sustainability Bonds. Our objective here is to further expand our Environmental (E), Social (S), and Governance (G) initiatives, as well as to contribute to sustainable societies.
We will continue to delve deeper into sustainability finance activities and communicate these activities to a wide range of stakeholders.
| Company Name | Issuance date | Amount | Coupon rate | Term | Redemption date |
|---|---|---|---|---|---|
| Unsecured Bond Series 25 (with inter-bond pari passu clause) (Sustainability Bonds) |
September 24, 2020 | ¥20 billion | 0.22% | 5 years | September 24, 2025 |
| Unsecured Bond Series 26 (with inter-bond pari passu clause) (Sustainability Bonds) |
September 24, 2020 | ¥10 billion | 0.47% | 7 years | September 24, 2027 |
| Unsecured Bond Series 28 (with inter-bond pari passu clause) (Sustainability-Linked Bond Principles) |
November 26, 2021 | ¥20 billion | 0.16% | 5 years | November 26, 2026 |
Unsecured Bond Series 25 and 26 (with inter-bond pari passu clause) (Sustainability Bonds)
| Objectives | AEON MALL is a life Design Developer that works with communities and produces ways of living for the future. As a commercial developer, we develop, manage, and operate shopping malls, while we introduce a growing range of functions beyond the framework of the shopping mall that address each life stage of our individual customers. We foster interactions, cultural development, and make other positive contributions to future lifestyles. In this context, we share the philosophy of the Sustainable Development Goals (SDGs) adopted at the UN Summit in September 2015. We pursue a wide range of activities to this end, including energy efficiency, the use of renewable energy, and exchange events held for community residents. In response to the spread of COVID-19, we provided various types of support to tenant companies that operate stores in our malls. Through ongoing quarantine measures in accordance with the AEON COVID-19 Prevention Protocol, we strive to provide safety and security to our customers and operate malls in which employees can work with peace of mind. In consideration of our responsibility as a company that creates the very lifestyles enjoyed by customers and to the expectations of society and stakeholders, we raised funds through the issuance of these bonds. Our objective here is to further expand our Environmental (E), Social (S), and Governance (G) initiatives, as well as to contribute to sustainable societies. |
|---|---|
| Use of Proceeds | COVID-19 countermeasures, Great East Japan Earthquake reconstruction support, overseas mall construction, domestic mall construction |
| Straight bonds | Series 25 ／ Series 26 |
| Supplement to Shelf Registration Statement | |
| Bond rating (credit rating) | A- (Rating and Investment Information, Inc.) |
| Third-Party Assessment of Eligibility | We received a second opinion about our framework from Rating and Investment Information, Inc. (R&I) about the compatibility of these bonds with the Sustainability Bond Principles of the International Capital Market Association (ICMA). （https://www.r-i.co.jp/en/index.html） |
| Investment Statements |
|
Reporting
Fund allocation status (as of August 2021)
| Target | Scheduled allocation | Allocation amount | Allocation status |
|---|---|---|---|
| Installation of temperature measurement equipment in malls (New, Refinance) | 100 million yen | 100 million yen | Allocation completed |
| Business continuity support for tenant companies (refinance) | 3,000 million yen | 3,000 million yen | Allocation completed |
| Masks, disinfectants, partitions, other disease-prevention measures, other equipment (refinance) | 400 million yen | 400 million yen | Allocation completed |
| AEON MALL Iwaki Onahama (refinance) | 6,500 million yen | 6,500 million yen | Allocation completed |
| AEON MALL Hoang Mai (Vietnam) construction (new) | 5,000 million yen | 1,070 million yen | *Opening plan changed to 2023 or later |
| AEON MALL Cambodia No.3 construction (new) | 5,000 million yen | 5,000 million yen | Allocation completed |
| AEON MALL Ageo construction (new) | 5,000 million yen | 5,000 million yen | Allocation completed |
| AEON Fujiidera SC construction (refinance) | 5,000 million yen | 5,000 million yen | Allocation completed |
Impact Report (as of August 2021)
| Target | Benefits to society |
|---|---|
| Installation of temperature measurement equipment in malls (New, Refinance) |
[Efforts to prevent the spread of COVID-19 infections]
[Maintaining business continuity and employment for tenant companies]
|
| Business continuity support for tenant companies (refinance) | |
| Masks, disinfectants, partitions, other disease-prevention measures, other equipment (refinance) | |
| AEON MALL Iwaki Onahama construction (refinance) |
|
| Target | Environmental improvements |
|---|---|
| AEON MALL Hoang Mai (Vietnam) construction (new) |
|
| AEON MALL Cambodia No.3 construction (new) |
|
| AEON MALL Ageo construction (new) |
|
| AEON Fujiidera SC construction (refinance) |
|
Unsecured Bond Series 28 (with inter-bond pari passu clause) (Sustainability Bonds)
| Objectives | AEON MALL is a life Design Developer that works with communities and produces ways of living for the future. As a commercial developer, we develop, manage, and operate shopping malls, while we introduce a growing range of functions beyond the framework of the shopping mall that address each life stage of our individual customers. We foster interactions, cultural development, and make other positive contributions to future lifestyles. As part of our decarbonization efforts, we aim to eliminate all CO2 emissions from our domestic malls by 2040. Our recent target has been to reduce energy consumption by 50% in FY2020 compared with FY2010. To this end, we rationalized air conditioning operations, installed high-efficiency and energy-saving equipment, installed solar systems on mall rooftops and other locations, and installed LED lighting. We achieved a 55.1% reduction in energy consumption (per floor area unit) for FY2020 compared with FY2010. In addition to these reduction measures, we set a new goal of operating all AEON Malls in Japan on essentially CO2-free electricity by 2025. We intend to achieve this goal by procuring energy from off-site renewable energy generation and by signing direct renewable energy contracts in each region. Since the majority of CO2 emissions come from electricity use, we expect to reduce total CO2 emissions in Japan by 80% in FY2025 compared to FY2013 levels. Going forward, we will accelerate our efforts to create decarbonized societies, aiming to eliminate CO2 and other emissions arising from our business activities. As part of our sustainability finance efforts to create decarbonized societies, we decided to issue bonds whose terms and conditions vary depending on whether we achieve our pre-determined sustainability targets. We will continue to expand ESG initiatives and contribute to the creation of sustainable societies. |
|---|---|
| Use of Proceeds | Funds for redemption of CP, repayment of long-term debt, and settlement of notes payable for facilities at AEON MALL Kawaguchi |
| SPTS | CO2-free electricity used in all AEON Malls in Japan by the end of FY2025 |
| Straight bonds | |
| Supplement to Shelf Registration Statement | |
| Bond rating (credit rating) | A- (Rating and Investment Information, Inc.) |
| Post-determination bond attributes | If, at the point of determination at the end of FY2025, the SPT is deemed to be unachievable, the company will donate 0.2% of the bond issuance value to a public interest incorporated foundation (e.g., AEON Environmental Foundation) by the end of October 2026. |
| Third-Party Assessment of Eligibility | We received a second opinion about our framework from Rating and Investment Information, Inc. (R&I) about the compatibility of these bonds with the Sustainability -Linked Bond Principles of the International Capital Market Association (ICMA). （https://www.r-i.co.jp/en/index.html） |
| Investment Statements |
|
Reporting
This information is expected to be disclosed during FY2022.