Sustainable Finance

Blue loans

The blue loan is a replacement fund for the decrease in cash reserves due to the acquisition of seawater desalination equipment for HOSHINOYA Taketomi Island. A third-party opinion was obtained from Rating and Investment Information, Inc. (hereinafter “R&I”) stating that the loan complies with the Green Loan Principles issued by the Loan Market Association (LMA), etc. and the Guidelines for Blue Finance formulated by the International Finance Corporation (IFC). Taketomi Island receives its daily water supply via undersea water pumped from Ishigaki Island, and the water source is limited. HOSHINOYA Taketomi Island produces its own drinking water using seawater desalination equipment, and has therefore stopped providing bottled mineral water in guest rooms, working towards a plastic bottle-free environment. In addition, the seawater desalination equipment integrates a heat pump, solar power generation equipment, and storage batteries. In addition to reducing GHG emissions, in February 2021, HOSHINOYA Taketomi Island became the first private company to be designated as an evacuation center in the town of Taketomi, as it can also provide drinking water, hot water, and electricity even during a disaster. The introduction of the seawater desalination equipment will reduce water charges, which will increase base profits, the basis for calculating the variable rent at HOSHINOYA Taketomi Island, by just under 5 million yen per year, ensuring economic rationality. HRR also believes that the investment is meaningful from the perspective of ESG and contributions to the local community.

[You can find the press release here]

List of Blue Finance Loans Procured (As of May 1, 2025)