Green bond and Green loan
JEI promotes acquisition of assets with excellent environmental performance. As for financial aspects, JEI pursues expansion of the base of investors who display high interest in environmentally conscious projects.
As part of such efforts, JEI is implementing advanced procurement through green bonds and green loans in financing related to the acquisition of AKASAKA INTERCITY AIR, which is an Eligible Green Project.
JEI decided to issue of green bonds with an aim to further promote ESG activities as well as expand fund procurement methods through proactive expansion of the investor base in ESG investments.
Green Bonds are a type of bond instrument to finance Eligible Green Projects. The issuance of Green Bonds must adhere to International Capital Market Association’s (ICMA) Green Bond Principles.
JEI has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for the eligibility of Green Bond Framework. For details of the second-party opinion, please refer to the following website.
(1) The use of proceeds from the Green Bond issuance
The net proceeds from the Green Bond issuance will be used for acquisition of assets defined in (2) below (hereinafter “Eligible Green Projects”), repayment of borrowings required in the acquisition of Eligible Green Projects or redemption of investment corporation bonds that have already been issued (including Green Bonds) required in the acquisition of Eligible Green Projects.
(2) Eligible Green Projects
Eligible Green Projects are assets that have received or scheduled to receive one of the following certifications within the last 2 years as of the payment date upon issuance of Green Bonds among the specified assets owned by JEI.
- DBJ Green Building Certification: 5, 4 or 3 stars
- CASBEE Certification: S, A or B+ rank
Eligible Green Projects are selected by the sustainability council (a council composed of the President and other board members established to organizationally promote sustainability initiatives) of Japan Excellent Asset Management Co., Ltd., the Asset Management Company of JEI.
(3) Maximum Issuance Amount of Green Bonds
The Debts of Eligible Green Projects calculated by multiplying the determined total period-end book value of Eligible Green Projects in the latest fiscal period by total assets-based LTV determined as of the end of the latest fiscal period is set as the maximum issuance amount of Green Bonds.
The allocation report about JEI Green Bond is as follows.
As of December 31, 2019
|Total amount of outstanding Green Bonds||4,000 million yen|
|Name||Amount of Green Bond to be issued
|Issuance date||Redemption date||Term of
|No.14 Unsecured Investment Corporate Bonds
(JEI Green Bond）
|4,000||0.63%||August 10, 2018||August 10, 2028||10years|
|Use of Funds to be procured||The funds procured through the issuance of the Investment Corporation Bonds will be a located to a portion of early payment (JPY 4,000 million yen) out of short-term borrowings (JPY 6,000 million yen) used for the acquision of AKASAKA INTERCITY AIR, which is an Eligible Green Project, on July 2, 2018.|
|Total Eligible Green Projects||166,098 million yen|
|The Debts of Eligible Green Projects||74,578 million yen|
The List of Eligible Green Projects
|Property Name||Book Value
|AKASAKA INTERCITY AIR||6,559|
|Nisseki Yokohama Building||23,106|
|Omori Bellport D||20,763|
|Kowa Nishi-Shimbashi Building||10,997|
|Musashikosugi Tower Place||12,494|
|Kowa Kawasaki Higashiguchi Building||9,872|
|Kowa Kawasaki Nishiguchi Building||26,769|
The Assessment Rank of Eligible Green Projects
As of December 31, 2019
|Eligible Green Projects||DBJ Green Building Certification||CASBEE|
|AKASAKA INTERCITY AIR||★★★★★||-|
|HAMARIKYU INTERCITY||Residential portion ★★★★★
Office portion ★★★★
|Nisseki Yokohama Building||★★★★||-|
|Omori Bellport D||★★★||-|
|Kowa Nishi-Shimbashi Building||★★★||Class A|
|Musashikosugi Tower Place||★★★||-|
|Kowa Kawasaki Higashiguchi Building||★★★||-|
|Kowa Kawasaki Nishiguchi Building||★★★||-|
The quantatative indicators of Eligible Green Projects
|Term||The Number of Eligible Green Projects||Total amount of the leasable floor space
|April 2018～ March 2019||10||195,963.90||46,268||295.6||28,822|
- Limited to the scope in which JEI has energy control authority.
JEI conducts borrowings through green loans as well as green bonds for the purpose of diversifying its fund procurement methods in view of expansion of the base of investors who display high interest in environmentally conscious projects.
Green loans refer to borrowings allocated to environmentally conscious businesses in compliance with the “Green Loan Principles”, an international guideline.
JEI’s green loans are the first borrowings conducted by a J-REIT in compliance with said principles. Furthermore, borrowings through green loans will be conducted within the amount of Debts of Eligible Green Projects in conjunction with outstanding green bonds.
Actual results of procurement through green loans
|Issue Amount||2,000 million yen|
As of December 31, 2019
|Mizuho Bank, Ltd.||2,000||Base interest
rate (JBA one-month Yen-TIBOR) +0.20%
Japan Credit Rating Agency, Ltd. (JCR)
|Use of Funds to be procured||Allocation to a portion of funds for early repayment of 2,000 million yen out of short-term borrowings of 6,000 million yen borrowed on July 2, 2018 and used in the acquisition of AKASAKA INTERCITY AIR, an Eligible Green Project.|