DBJ Extends Syndicated Sustainability Linked Loan with Engagement Dialogue to Fuyo General Lease Co., Ltd.

Since its establishment in 1969, Fuyo General Lease Co., Ltd. ("FGL"; headquarters: Chiyoda-ku, Tokyo) has provided its clients with outstanding business solutions through a wide variety of leasing services. Not only a leader in real estate leasing, FGL engages in renewable energy power projects and promotes work style reform through BPO (business process outsourcing). Applying the skills and networks developed through its traditional leasing business, the firm offers services that transcend those limits as it works to resolve a diverse range of challenges for its customers and society as a whole.

Backcasting from its Vision for 2030, FGL identified "contributing to the growth of a circular society" as an important materiality. In its medium-term management plan, Fuyo Shared Value 2026, the company referred to a circular economy as a driver of growth, positioning it as a "transformation zone" in which to concentrate business resources.

For this loan, DBJ chose to examine the recycling rate of waste plastic from returned properties through "material recycling" and "chemical recycling" as a key performance indicator (KPI) for that materiality, setting a KPI of at least 80.0% for FY 2025 as a sustainability performance target (SPT). By attaining SPTs through its circular economy initiatives, FGL seeks to achieve one of the goals of the medium-term management plan: solving social issues while realizing economic value.

In structuring this syndicated sustainability linked loan with engagement dialogue, DBJ served as the mandated lead arranger and sustainability coordinator; the other lenders are The Higo Bank, Ltd., The Ogaki Kyoritsu Bank, Ltd., THE SHONAI BANK, LTD., The Shikoku Bank, Ltd., Suruga Bank Ltd., Daishi Hokuetsu Bank, Ltd., and The Chiba Kogyo Bank Ltd.