Social Bonds

Issuance of Social Bonds

To contribute toward the creation of social value, the Company has submitted the Amended Shelf Registration Statement for the issuance of social bonds, which will procure funds for the construction and operation of a new distribution center in Tsukuba City, Ibaraki Prefecture, and buildings for the production of pharmaceuticals in Ota City, Gunma Prefecture.

Overview of the Bonds

Name of bonds 1st series of unsecured bonds of Alfresa Holdings Corporation(with limited inter-bond pari passu clause) (social bonds)
Total issue amount ¥20 billion
Amount of each bond ¥100 million
Interest rate 0.827%
Redemption price ¥100 per ¥100 of each bond
Payment date December 14, 2023
Maturity date December 14, 2028
Interest payment dates June 14 and December 14 of each year
Collateral These bonds are unsecured and carry no guarantees.
Financial covenants Negative pledge clause attached
Method of offering Public offering
Fiscal agent MUFG Bank, Ltd.
Book-entry transfer institution Japan Securities Depository Center, Inc.
Lead underwriters Daiwa Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Use of proceeds The proceeds will be used for new investments toward the eligible projects determined under the social bond framework.

① Construction and operation of a new distribution center in Tsukuba City, Ibaraki Prefecture

② Construction and operation of buildings for the production of pharmaceuticals in Ota City, Gunma Prefecture

Rating A+ (Rating and Investment Information, Inc.)
Structuring agent*1 Daiwa Securities Co., Ltd.

*1 An entity that supports the issuance of SDGs-related bonds by providing advice on developing frameworks and on obtaining second opinions and other external evaluations

ALFRESA HOLDINGS CORPORATION Social Bond Framework

The social bond framework for the issuance of social bonds was developed in accordance with the 2023 Social Bond Principles (SBP) of the International Capital Market Association (ICMA) and the 2021 Social Bond Guidelines (SBG) of the Financial Services Agency (FSA).

External Evaluation

R&I’s evaluation of the social bond framework

Social Bond Reporting (Effective September 30, 2024)

The following disclosure is in regard to our fund allocation status reporting and impact reporting.

1Allocation Reporting

Eligible Projects Overview (Progress) Allocation Amount (Actual/Planned) Amount of Unallocated Funds and Scheduled Date of Allocation
Construction and operation of a new distribution center in Tsukuba City, Ibaraki Prefecture
(Alfresa Corporation)
Commenced operation on May 7, 2024 3.44 billion yen Allocation completed
Construction and operation of buildings for the production of pharmaceuticals in Ota City, Gunma Prefecture
(Alfresa Pharma Corporation)
Detailed design completed on January 30, 2024
Scheduled to commence operation in April 2026
850 million yen Allocation scheduled to be completed by April 2026
Unallocated amount 15.7 billion yen

Note:Unallocated funds are managed in cash and cash equivalents.

2Impact Reporting

Eligible Projects Output Outcomes Impact
Construction and operation of a new distribution center in Tsukuba City, Ibaraki Prefecture
(Alfresa Corporation)
Capabilities related to the BCP
  • The entire building will utilize seismic isolation structures that minimize damage even in major earthquakes (intensity 6) .
  • The building will be equipped with a large emergency power supply capable of operating for 72 hours.
  • Water storage facilities for use during disruptions to water supply and sewerage will be installed.
  • The number of medical institutions in range of the pharmaceutical supply from distribution centers: over 10,000
  • Stable supplies of pharmaceuticals even in times of disaster
Assurance of access to proper medical care during normal times and disasters
Construction and operation of buildings for the production of pharmaceuticals in Ota City, Gunma Prefecture
(Alfresa Pharma Corporation)
Capabilities of buildings for the production of pharmaceuticals
  • Increased production capacity for small-molecule pharmaceuticals
    • Construction of new buildings dedicated to small-molecule pharmaceuticals
    • Use of equipment that can manufacture not only ethical pharmaceuticals but also over-the-counter drugs
  • Establishment of system for consigned manufacturing of formulations with high pharmacological activity
    • The construction of new buildings for formulations with high pharmacological activity that is equipped to handle the advanced containment of hazardous substances
  • Establishment of system for consigned inspection, packaging, and testing of sterile preparations
    • The construction of a refrigerated warehouse will facilitate the storage of antibody drugs and other sterile preparations by maintaining sterile conditions as a clean room while ensuring product quality
The production volume in buildings
  • Increase production capacity for small-molecule pharmaceuticals: Production capacity of solid, orally administered dosage forms of small-molecule pharmaceuticals expected to expand from approximately 2.0 billion to roughly 3.6 billion per year
  • Establish a system for consigned manufacturing of formulations with high pharmacological activity: Production capacity of anti-cancer drugs and hormone formulations in orally administered dosage forms expected to expand to 400 million tablets per year
  • Establish a system for consigned inspection, packaging, and testing of sterile preparations: The company will conduct labeling, packaging, storage, and visual inspection of vials, ampoules, syringes,
  • and other items according to their respective standards. The warehouse will be capable of storing
  • approximately 160 pallets at a temperature of 2℃–8℃.
Extension of healthy life expectancies through the advancement of healthcare services

Note: Construction of new buildings for the production of pharmaceuticals in Ota City, Gunma Prefecture: Alfresa Pharma Corporation is constructing three new buildings at its Gunma Plant to strengthen and expand the production capacity of the Group's total supply chain services. By increasing the production capacity of small-molecule pharmaceuticals and establishing a system for full-scale entry into the consigned manufacturing of formulations with high pharmacological activity and the consigned inspection, packaging, and testing of sterile preparations, we will deliver pharmaceuticals in various forms to medical institutions and patients in a safe, secure, and sincere manner. We have already received inquiries regarding consigned manufacturing from several pharmaceutical companies.