Green Finance
The Investment Corporation is the first J-REIT that has formulated a green finance framework since IPO. It aims to promote ESG-oriented asset management through green finance and to strengthen its financing base through the expansion of investors with an interest in ESG investment.
Green Finance Framework
◇External review
The Investment Corporation has obtained Green 1 (F), the highest rank in the JCR Green Finance Framework Evaluation, from Japan Credit Rating Agency, Ltd. (JCR), which evaluates green finance, in relation to the adequacy of the Investment Corporation’s green finance framework. Please visit the website of JCR for further information.
https://www.jcr.co.jp/greenfinance/
◇Use of funds
The funds procured through green financing will be used for the acquisition of assets that meet certain criteria (qualified green assets) or renovations that meet certain criteria, or for the repayment of borrowings (including green loans) or the redemption of investment corporation bonds (including green bonds) for the abovementioned purposes.
◇Qualification criteria
| Qualified green assets | Properties that have obtained or are expected to obtain any of the following certifications: CASBEE for Buildings (New Construction),CASBEE for Real Estate:S rating to B+ rating municipal version of CASBEE (applicable only within three years from the date of completion):S rating to B+ rating DBJ Green Building Certification: 5 stars, 4 stars or 3 stars BELS Certification (FY2016 standard):5 stars, 4 stars or 3 stars excluding logistics properties with BEI over 0.75 BELS Certification (FY2024 standard, Non-residential):Level 6 to Level 4 LEED Certification:Platinum Gold or Silver (for LEED BD+C, version 4.0 or later) |
|---|---|
| Renovations | Renovations that meet either of the following criteria: i.Renovations whose purpose is improving the environmental impact, including reducing the consumption or emissions of CO2, energy, water, etc. (renovations that are expected to reduce consumption or emissions by 30% or more) ii.Renovations leading to meeting the criteria for qualified green assets and the acquisition or re-acquisition of an environmental certification, or going up a notch |
| Energy-saving equipment | Replacement of air-conditioning equipment, LED lighting, introduction of power storage systems (which are expected to reduce energy consumption by 30% or more) |
| Renewable energy | Acquisition or installation of renewable energy power generation facilities (the facilities need to be installed on the site of a property or on the roof of a building owned by the Investment Corporation) |
◇Funds management
The Investment Corporation sets the upper limit of green financing (qualified green liabilities) at the sum of the acquisition prices of assets owned by the Investment Corporation that meet the qualification criteria and expenses for renovations, etc. that meet the qualification criteria, and controls green financing so that the total funds procured through green financing will not exceed the qualified green liabilities. If there are any funds procured through green financing that are not appropriated, the funds will be accounted for as cash or cash equivalents until they are appropriated for other projects that meet the qualification criteria.
Reporting
As of February 28, 2025
| Assets owned by the Investment Corporation (Million yen) |
Qualified green assets (Million yen) |
Qualified green liabilities (Million yen) |
|---|---|---|
| 144,684 （18 properties） |
134,054 （11 properties） |
134,054 |
◇Status of use of proceeds from green loans
As of February 28, 2025
| Lender | Borrowing date | Repayment date | Balance (million yen) |
Amount of funds used (million yen) |
Amount of funds unused (million yen) |
|---|---|---|---|---|---|
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. The Bank of Fukuoka, Ltd. Development Bank of Japan Inc. |
2019/12/10 | 2025/12/10 | 9,100 | 9,100 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. Development Bank of Japan Inc. Mizuho Trust & Banking Co., Ltd. |
2019/12/10 | 2027/12/10 | 6,800 | 6,800 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. Mizuho Trust & Banking Co., Ltd. |
2019/12/10 | 2029/12/10 | 3,500 | 3,500 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. The Bank of Fukuoka, Ltd. Mizuho Trust & Banking Co., Ltd. Development Bank of Japan Inc. |
2020/12/4 | 2026/11/30 | 4,850 | 4,850 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. The Bank of Fukuoka, Ltd. Mizuho Trust & Banking Co., Ltd. Development Bank of Japan Inc. |
2020/12/4 | 2028/11/30 | 4,850 | 4,850 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. The Bank of Fukuoka, Ltd. |
2022/3/31 | 2030/11/29 | 3,850 | 3,850 | 0 |
| Nippon Life Insurance Company | 2022/12/2 | 2028/11/30 | 1,000 | 1,000 | 0 |
| Mitsui Sumitomo Insurance Company | 2022/12/2 | 2028/11/30 | 1,000 | 1,000 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. Development Bank of Japan Inc. Shinkin Central Bank The Bank of Kyoto, Ltd. The Chiba Bank, Ltd. |
2023/4/3 | 2028/11/30 | 4,000 | 4,000 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. MUFG Bank, Ltd. Development Bank of Japan Inc. Shinkin Central Bank The Bank of Kyoto, Ltd. The Chiba Bank, Ltd. |
2023/4/3 | 2029/5/31 | 3,900 | 3,900 | 0 |
| Sumitomo Mitsui Banking Corporation | 2023/12/11 | 2027/5/31 | 2,000 | 2,000 | 0 |
|
Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Mizuho Bank, Ltd. The Bank of Fukuoka, Ltd. |
2023/12/11 | 2027/11/30 | 6,000 | 6,000 | 0 |
| Mitsubishi UFJ Trust and Banking Corporation | 2025/02/28 | 2033/05/31 | 800 | 800 | 0 |
- This Green Loan will be an SDGs Green Loan provided by Sumitomo Mitsui Banking Corporation (“SMBC”). SDGs Green Loans are loans that restrict the usage of proceeds to businesses that pay consideration to the environment. SDGs Green Loans are provided only after SMBC assesses the evaluations by third party rating institutions, and confirms that the project which the proceeds are to be used for fulfil the Green Finance requirements and are compatible with Sustainable Development Goals.
For details on SMBC’s SDGs Green Loan, please see SMBC’s website using the following link:
https://www.smbc.co.jp/hojin/financing/sdgs_loan/ (Japanese Only)
◇Status of use of proceeds from green bonds
As of June 15, 2023
| Name | Issuance date | Redemption date | Issuance amount (million yen) |
Amount of funds used (million yen) |
Amount of funds unused (million yen) |
|---|---|---|---|---|---|
| 1st Series Unsecured Investment Corporation Bond (Green Bond) | 2022/7/7 | 2027/7/7 | 1,600 | 1,600 | 0 |
| 2nd Series Unsecured Investment Corporation Bond (Green Bond) | 2023/6/15 | 2028/5/31 | 3,000 | 3,000 | 0 |
◇Impact reporting
SLR will disclose the following indicators on its website for as long as there is an outstanding balance of green finance.