June 13, 2022 Firm News

MHM advised on the arrangements of the first domestic social loan for a Park-PFI project

Yuki Matsuda and Shuhei Takaishi acted as the legal counsel for the first domestic social loan for a Park-PFI project arranged by The Hyakugo Bank, Ltd.

The Hyakugo Bank, Ltd. announced that it has executed a loan agreement with a local company engaged in the general motor truck transportation business, headquartered in Suzuka City, Mie Prefecture, for a social loan for a Park-PFI project (Chusei Green Park PFI Project) in Tsu City, Mie Prefecture. This was the first social loan initiative in Japan for the purpose of financing a Park-PFI project in which a third party’s opinions were obtained.

A social loan is a form of sustainable finance, whose purpose is exclusively to finance projects for resolving social issues. Debt financing in the form of loans enables more flexible structuring and contract terms reflecting discussions between lenders and borrowers, and further development of innovative ideas among the parties concerned. In addition, there is an increasing number of cases in which local companies and financial institutions work together to revitalize regions and resolve SDGs/ESG issues unique to the region, and this project can be said to form part of the foundation for such movement.

With our track record in a variety of financing transactions, the firm’s lawyers have built up a wealth of experience in the structuring and documentation of SDGs/ESG finance. Leveraging such experience, the firm will continue to provide advice tailored to the needs of projects from the perspective of financial institutions and fundraisers, and thereby contribute to the further development of financing methods that meet the needs of society going forward.