Green Bond

Issuing Green Bonds

As part of its efforts to maintain sustainability for the environment and society as a whole, JRF has issued the Green Bond, the first such issuance from a J-REIT in May 2018. Through the issuance of the Green Bond, JRF conducts investment contributing to the implementation and realization of a sustainable environment and society.

About Green Bonds

 Green Bonds refer to bonds that are issued by business companies, funds, local governments, and other entities in order to procure funds for green projects (environmental investments and loans). Typically, the bonds are issued according to the Green Bond Principles laid down by the International Capital Market Association (ICMA). For further details, please see the link below:

The Green Bond Framework Overview

1. Project evaluation/selection

With regard to the Green Bond issuance process, which is based on the Green Bond Principles, MCUBS selects new or existing properties (“Eligible Green Projects”) from its portfolio, which satisfy the eligibility criteria*1 of MC-UBS’ Sustainability Committee, as subject assets for the Green Bond.
 
*1 To be eligible for Green Bond proceeds, Eligible Green Projects must meet one of the following eligibility criteria:
  • On the payment date of each investment corporation bond, buildings that have received 3, 4, or 5 stars under the DBJ Green Building Certification Program within two years preceding the Green Bond issuance date, and/or buildings that are expected to receive the certification after issuance. At the time of reporting, buildings that meet the same criteria as of the end of February of each year
  • On the payment date of each investment corporation bond, buildings that have received B+, A, or S rank under the CASBEE Certification Rank within two years preceding the Green Bond issuance date, and/or buildings that are expected to receive the certification after issuance. At the time of reporting, buildings that meet the same criteria as of the end of February of each year.

2. Use of proceeds

The Green Bond totaling the same amount will be allocated toward one or more of the following.
  • The acquisition of existing and/or new Eligible Green Projects.
  • The refinancing of existing debts that have already been allocated to Eligible Green Projects.
  • The redemption of the issued investment corporation bonds (including Green Bonds) required to acquire Eligible Green Projects.

3. Management of Green Bond proceeds

JRF has an internal process in place to track and monitor the amount of outstanding Green Bond proceeds and the allocation thereof, which is in line with market practice. The maximum outstanding amount of the proceeds (“Debts of Eligible Green Projects”) is calculated by multiplying the total book value of Eligible Green Projects by JRF’s interest-bearing liabilities ratio (45.0% as of the end of February 2020).
 
The maximum outstanding amount of Green Bond proceeds is ¥158.6 billion, and JRF currently issues ¥15 billion (as of the end of February 2020).
For further details regarding Eligible Green Projects, please see the link below:
Environmental Approvals and Evaluations for Group Assets

For the Book Value of Eligible Green Projects, please see the link below:
IR Library

Second-Party Opinion

JRF has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for the eligibility of Green Bond*2 proceeds. For further details regarding the second-party opinion, please click

*2 Green Bond eligibility entails a Green Bond framework that aligns with the four pillars (use of proceeds, project evaluation and selection, management of proceeds, and reporting) of the Green Bond Principles 2018

Issuing Green Bonds

This table can be scrolled sideways.

  The 1st Green Bonds
(The 12th Unsecured Investment Corporation Bonds)
The 2nd Green Bonds
(The 13th Unsecured Investment Corporation Bonds)
Issued Amount (million yen) 8,000 7,000
Interest Rate 0.210% 0.200%
Issue Date May 25, 2018 June 25, 2019
Maturity Date May 25, 2023 June 25, 2024
Remarks Unsecured, Unguaranteed Unsecured, Unguaranteed
Assessment*3 GA1 -
Release Notice Concerning Issuance of the 1st Green Bond Notice Concerning Issuance of the 2nd Green Bond
*3 Assessment is a rating opinion provided by R&I with regards to the extent to which the Green Bond proceeds are used to invest in projects that resolve environmental issues.

Impact Report

1. Eligible Green Projects: Number of Properties and Total Floor Space

* Excluding land with leasehold interest

2. Eligible Green Projects: Energy Consumption

* In the conversion of energy consumption into CO2 emissions, a calculation method and an emission factor based on the Act on Promotion of Global Warming Countermeasures are adopted.
* The data of CO2 emissions is sum of Scope 1 and Scope 2, not including Scope 3.