Green Finance
Along with promoting sustainability initiatives, One REIT aims to strengthen the funding platform by expanding the ESG investor base through procurement of funds using green finance (green bonds, green loans).
Green Finance Framework
１．Use of proceeds
Funds procured through green finance will be used to refinance funds for the acquisition of assets and renovation work that meet either Eligibility Criteria 1 or Eligibility Criteria 2 described below (hereinafter referred to as “Eligible Green Assets”) as well as funds required for them.
２．Eligibility criteria
| ● | Eligibility Criteria 1 |
|---|
Properties which have already acquired/renewed or are scheduled to acquire/renew one of the following certifications granted by a third-party certification body.
(1) DBJ Green Building Certification: three stars, four stars or five stars
(2) CASBEE for Real Estate Certification: rank B+, A, or S
(3) LEED Certification: Silver, Gold or Platinum
(4) BELS Assessment: three stars, four stars or five stars
| ● | Eligibility Criteria 2 |
|---|
Renovation work of facilities, etc. that meets any of the following.
(1) Renovation work intending to improve the number of stars or the rank by one or more for any green eligibility criteria (green building) certification
(2) Facility renovation work aiming for beneficial environmental improvement, such as energy efficiency and water consumption performance, at real estate under management (those which are expected to reduce consumption by 30% or more compared with previous levels)
(3) Introduction or acquisition of equipment related to renewable energy
３．Process for evaluation and selection of projects
At the Asset Management Company, the Finance and Administration Division will select a project for which the proceeds will be used, and the Investment & Asset Management Division I manager, Compliance Officer and President will discuss and confirm conformity with the eligibility criteria. Subsequently, the board of directors, etc. resolves the implementation of green finance in accordance with the rules of the Asset Management Company and One REIT.
４．Management of proceeds
| ● | Internal management of the proceeds from green finance and unallocated funds will be performed appropriately. If there are unallocated funds, they will be managed as cash or cash equivalents until such funds are allocated. |
|---|---|
| ● | The amount calculated by multiplying the total acquisition price of owned properties that meet Eligibility Criteria 1 and the total amount of expenses of construction and renovation projects that meet Eligibility Criteria 2 by the LTV (Loan to Value (ratio of interest-bearing debt)) based on total assets as of the end of the most recent fiscal year (hereinafter referred to as the “upper limit of eligible green debt”) is set as the upper limit of the balance of green finance, and the balance of green finance is managed so that it does not exceed the upper limit of eligible green debt. |
As of October 17, 2022
| Ａ．Total acquisition price (Eligibility Criteria 1) | \70,509 million |
|---|---|
| Ｂ．Total amount of expenses of renovation work of facilities, etc. (Eligibility Criteria 2) | - |
| Ｃ．Total amount of Eligible Green Assets (A+B) | \70,509 million |
| Ｄ．LTV | 47.1% |
| Ｅ．Upper limit of eligible green debt (C×D) | \33,209 million |
| (Note) | The figure as of the end of February 2022 is indicated for LTV. |
|---|
５．Reporting
●Reporting on status of fund allocation
As of September 7, 2022
The status of fund allocation regarding green finance of One REIT is as follows.
| Balance of proceeds (million yen) |
Allocated amount (million yen) |
Unallocated amount (million yen) |
||
|---|---|---|---|---|
| Green Bonds | 3,000 | 3,000 | - | |
| Green Loans | 8,000 | 8,000 | - | |
Status of issuance of green bond
| Name | Amount Issue (million yen) |
Annual Coupon | Issue Date | Maturity Date | Remarks |
|---|---|---|---|---|---|
| 5th Unsecured Investment Corporation Bonds (Green Bonds) | 3,000 | 0.780% | January 27, 2022 | January 27, 2032 | Unsecured Unguaranteed |
Status of borrowing of green loan
| Lender | Balance (million yen) |
Interest rate | Drawdown date | Repayment date | Remarks |
|---|---|---|---|---|---|
| Mizuho Trust & Banking Co., Ltd. Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation SBI Shinsei Bank, Limited Resona Bank, Limited The Bank of Fukuoka, Ltd. |
2,000 | 0.42455% | September 7, 2022 | September 7, 2025 | Unsecured Unguaranteed Floating rate(Note) |
| Mizuho Trust & Banking Co., Ltd. Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation Resona Bank, Limited Aozora Bank, Ltd. The Bank of Fukuoka, Ltd. San ju San Bank,Ltd. |
6,000 | 0.79750% | September 7, 2022 | September 7, 2027 | Unsecured Unguaranteed Fixed rate |
| (Note) | The interest rate is applied from February 28, 2023 to May 31, 2023. The base rate of interest (Japanese Bankers Association (JBA) three-month Japanese yen TIBOR) is 0.07455%. Changes in the JBA Japanese yen TIBOR as the base rate of interest can be checked on the website of the JBA TIBOR Administration (https://www.jbatibor.or.jp/english/rate/). |
|---|---|
●Impact Reporting
As of November 1, 2022
Eligible Green Assets owned by One REIT
| Property name | Acquisition price (million yen) |
Total floor space （㎡） |
grade/Rank |
|---|---|---|---|
| ONEST Kanda Square | 7,350 | 7,145.42 | CASBEE for Real Estate Certification: rank A |
| Tachikawa Nishiki-cho Building | 3,264 | 8,026.84 | CASBEE for Real Estate Certification: rank A |
| Hachioji SIA Building | 730 | 3,920.36 | CASBEE for Real Estate Certification: rank A |
| ONEST Omiya Kishiki-cho Building (Daido Life Omiya Building) |
3,000 | 6,155.16 | CASBEE for Real Estate Certification: rank A |
| ONEST Ikebukuro East Building | 2,200 | 3,503.13 | CASBEE for Real Estate Certification: rank A |
| Crescendo Building | 2,466 | 5,534.88 | CASBEE for Real Estate Certification: rank A |
| Tokyo Parkside Building | 10,450 | 18,881.34 | CASBEE for Real Estate Certification: rank A |
| ONEST Nishi-Gotanda Square | 4,500 | 6,706.79 | CASBEE for Real Estate Certification: rank A |
| ONEST Hongo Square (D’sVARIE HONGO BLDG) |
5,406 | 5,652.18 | CASBEE for Real Estate Certification: rank A |
| ONEST Minami-Otsuka Building (MSB-21 Minami-Otsuka Building) |
3,900 | 5,724.39 | CASBEE for Real Estate Certification: rank A |
| D’sVARIE KANDA BLDG | 2,100 | 1,796.69 | CASBEE for Real Estate Certification: rank A |
| Kuramochi Building Daiichi | 3,951 | 4,659.78 | CASBEE for Real Estate Certification: rank A BELS：Four stars |
| Shinkawa 1-chome Building | 2,100 | 2,298.06 | CASBEE for Real Estate Certification: rank A |
| Karasuma Plaza 21 | 3,700 | 11,998.02 | CASBEE for Real Estate Certification: rank A |
| Nagoya Fushimi Square Building | 4,812 | 12,995.90 | CASBEE for Real Estate Certification: rank A |
| Higobashi Center Building | 8,930 | 24,556.71 | CASBEE for Real Estate Certification: rank A |
| Daido Life Mito Building | 1,650 | 5,332.76 | CASBEE for Real Estate Certification: rank A |
| Total 17 Properties | 70,509 | - | - |
| (Note) | The "Total floor space" of the Daido Life Mito Building does not include the total floor space of the annexed building (21.36m2). |
|---|---|
Energy consumption/greenhouse gas emissions/water usage of Eligible Green Assets
| Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | |
|---|---|---|---|
| Energy consumption (MWh) | 15,655 | - | - |
| Greenhouse gas emissions (t-CO2) | 6,779 | - | - |
| Water usage (㎥) | 75,393 | - | - |
| (Note1) | The measurement period for each fiscal year is one year from April 1 to March 31 of the following year. |
|---|---|
| (Note2) | Figures for Fiscal 2021 do not include actual figures for Shinkawa 1-chome Building and Daido Life Mito Building, which became Eligible Green Assets after the measurement period. |
Evaluation by external agency
For eligibility of the green finance framework, One REIT has been assigned “Green 1 (F)”, the highest evaluation grade in “JCR Green Finance Framework Evaluation” by Japan Credit Rating Agency, Ltd. (JCR).
For details, please refer to JCR’s website ( https://www.jcr.co.jp/en/greenfinance/)