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Transition Loans with Sumitomo Mitsui Trust Bank

Transition Loans with Sumitomo Mitsui Trust Bank

IHI concluded "Transition Loan" financing agreement with Sumitomo Mitsui Trust Bank, Limited in November 2023.

Sustainable Finance Framework
Using of proceeds
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Sustainable Finance Framework

This loan is financed using the Sustainable Finance Framework developed in September 2023.
IHI Corporation Sustainable Finance Framework

Using of proceeds

The IHI Group will use proceeds for new and existing expenditures, (such as for technology and product development costs, capital expenditures, and capital investment spending) relating to qualified projects meeting the following eligibility criteria.

Category		Projects（Example）
1.Growth Business （Aero Engines and Space）	Weight reduction of aircraft Electrification of aircraft engine*	Improvement of gas turbine’s efficiency, Development of Next generation engine, etc. （Use of Proceeds: Research and Development, Business Development, Capital Expenditure, Miscellaneous cost relevant to above mentioned projects and Capital Contribution）
1.Growth Business （Aero Engines and Space）	SAF*	Development synthetic catalysts and algae culture, etc.（Use of Proceeds: Research and Development, Business Development, Capital Expenditure, Miscellaneous cost relevant to above mentioned projects and Capital）
2.Development focus Business （Clean Energy）	Establishment of an Ammonia Value Chain	＜Produce＞ Capital Contribution to green ammonia production projects and investment to ammonia synthesis system, etc. ＜Transport and Storage＞ Development of ammonia tanks, Capital contribution to large receiving and storage terminals, etc. ＜Use＞ Demonstration and commercialization of gas turbines that can operate on 100% firing, etc. （Use of Proceeds：Research and Development, Business Development, Capital Expenditure, Miscellaneous cost relevant to above mentioned projects and Capital）
2.Development focus Business （Clean Energy）	Realization off carbon recycling	Demonstration and commercialization toward CCUS, methane synthesis and e-fuel production, etc. Capital contribution to projects of conservation and management of Tropical Peatland（NeXT FOREST, etc.）（Use of Proceeds：Research and Development, Business Development, Capital Expenditure, Miscellaneous cost relevant to above mentioned projects and Capital）
3.Core Businesses （Utilizing Existing Businesses）	Electrification of automobile*	Development of electric turbochargers, etc. （Use of Proceeds：Research and Development, Business Development, Capital Expenditure, Miscellaneous cost relevant to above mentioned projects and Capital）
4.Reducing CO₂ Emissions in Business Operations （Scope1，2）		switching to fuels for heat source equipment at business sites, promoting electrification, and upgrading to energy efficiency equipment, etc. (Use of Proceeds: Capital Expenditure, Miscellaneous cost relevant to above mentioned projects and Capital)

Related News Release

November 30, 2023　 IHI Concludes Transition Loan Agreement with Sumitomo Mitsui Trust Bank

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