Sustainability Finance, Green Finance

JEI promotes acquisition of assets that aim for environmental performance and solving social issues, and from a financing perspective, it also pursues initiatives to expand its base of investors who are proactive regarding ESG investment. As part of such efforts, JEI implements advanced procurement through sustainability finance and green finance in financing related to the acquisition of Eligible Sustainability Projects, Eligible Green Projects, and renovation work that contributes to enviroment improvements.

Sustainability Finance

Sustainability finance refers to debt or debt securities that an issuer procures to finance Eligible Sustainability Assets and are generally procured in accordance with the principles outlined by the International Capital Markets Association (ICMA).
JEI’s Sustainability Finance Framework has acquired the highest ranked “SU1 (F)” rating from the Japan Credit Rating Agency, Ltd. (JCR).
URL: https://www.jcr.co.jp/en/greenfinance/sustainability/

Sustainability Finance Framework

(1) Use of proceeds

Funds procured through sustainability finance shall be allocated as new funds to acquire the assets defined in (2) below (hereinafter the “Eligible Sustainability Projects”) and funds for the refinancing or redemption of existing debt or investment corporation bonds required for the acquisition of Eligible Sustainability Projects.

(2) Eligible Sustainability Projects

Eligible Sustainability Projects shall meet the following criteria and shall be selected at the sustainability committee of Japan Excellent Asset Management Co., Ltd., the Asset Management Company of JEI.

Properties that have received or are scheduled to receive one of the following certifications within the past three years from the procurement date or during the remaining term of sustainability finance:
DBJ Green Building Certification: 5, 4, or 3 stars
CASBEE Real Estate Certification: S, A, or B+ rank
Properties that maintain a certain level or higher of the following functions contributing to the resolution of social issues
  Regional disaster prevention
  Healthcare services
  Child-rearing support
  Consideration for the elderly and the disabled
  Socioeconomic advancement and empowerment, etc.

(3) Maximum amount of Sustainability Finance

The total period-end book value of Eligible Sustainability Projects in the most recent fiscal period multiplied by total assets-based LTV as of the end of the most recent fiscal period (hereinafter the “Debts of Eligible Sustainability Projects”) is set as the maximum amount of Sustainability Finance.

Reporting on Sustainability Finance

（１）Allocation reporting

JEI’s allocation of funds concerning sustainability finance is as follows.

As of March 31, 2025

Balance of Sustainability Finance	0 million yen
Total Amount of Eligible Sustainability Projects	6,383 million yen
LTV	43.9 %
Debts of Eligible Sustainability Projects	2,802 million yen

These are finalized figures as of the most recent fiscal period.

List of Eligible Sustainability Projects

Property Name	Book Value (million yen)
AKASAKA INTERCITY AIR	6,383
Total	6,383

（２）Reporting

Assessment Rank of Eligible Sustainability Projects

As of February 21, 2025

Eligible Sustainability Projects	DBJ Green Building Certification	CASBEE
AKASAKA INTERCITY AIR	-	S

Please follow the link for the latest certifications and definitions.

Quantatative indicators of Eligible Sustainability Projects

Term	The Number of Eligible Sustainability Projects	Total Leasable Space （㎡）	Electricity consumption^（※）（MW/h)	Water consumption^（※）（Thousand ㎥）	CO₂ Emissions^（※）（t-CO₂)
April 2023 ～ March 2024	1	2,580.24	228	1.7	57

Limited to the scope in which JEI has authority over energy control.
These figures are for Eligible Sustainability Projects as of the end of March 2024.

Green Finance

Green Finance are a type of bond and borrowings instrument an issuer issues to procure funds to finance its Green Projects (environmentally conscious investment and loan projects) and are generally issued in accordance with International Capital Market Association’s (ICMA) Green Bond Principles, and Loan Market Association’s(LMA) Green Loan Principles.

JEI has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for Suitability of Green Finance Framework. For details of the second-party opinion, please refer to the following website.

Reference

Green Finance Framework

（１）Use of proceeds

The net proceeds from the Green Finance will be used for acquisition, refinancing, and redemption of assets that meet the following "Eligibility Criteria A", also be applied as expenses for renovation works that meet the "Eligibility Criteria B".

Eligibility Criteria A:

A real property that has achieved one of the top three levels of DBJ Green Building Certification or CASBEE for Real Estate within three years from the payment date of green bond or the execution date of green loan

Eligibility Criteria B:

Renovation works that aim at reducing the amount of CO₂ emissions, or energy consumption by at least 20% compared to that before the renovation
Renovation works that aim at newly obtaining a green building certification stipulated under Eligible Criteria A or improving the level of the certification by at least one level

（２）Eligible Green Projects

Eligible Green Projects are assets that have received or are scheduled to receive one of the following certifications within the last 3 years as of the procurement date of Green finance among the specified assets owned by JEI (excluding, however, those corresponding to Eligible Sustainability Projects).

DBJ Green Building Certification: 5, 4, or 3 stars
CASBEE Certification: S, A, or B+ rank

Eligible Green Projects are selected by the sustainability committee (a committee composed of the President and other board members established to promote sustainability initiatives) of Japan Excellent Asset Management Co., Ltd., the Asset Management Company of JEI.

（３）Maximum amount of Green Finance

Debts of Eligible Green Projects calculated by multiplying the total period-end book value of Eligible Green Projects in the latest fiscal period by total assets-based LTV as of the end of the latest fiscal period, and the "total expenditure for renovation work" is added to set the maximum amount of Green Financings to be procured.

Reporting Concerning Green Finance

（１）Allocation reporting

The allocation report about JEI Green Finance is as follows.

As of February 21, 2025

Total Amount of Outstanding Green Finance	38,860 million yen
Green Bonds	19,600 million yen
Green loans	19,260 million yen

Green Bonds

Name	Amount of Green Bond to be issued (million yen)	Interest Rate	Issuance date	Redemption date	Term of Issuance
No.14 Unsecured Investment Corporate Bonds (JEI Green Bonds)	4,000	0.63%	August 10, 2018	August 10, 2028	10years
No.16 Unsecured Investment Corporate Bonds (No.2 JEI Green Bonds)	5,000	0.75%	October 29, 2020	October 29, 2035	15years
No.19 Unsecured Investment Corporate Bonds (No.3 JEI Green Bonds)	2,000	0.724%	February 8, 2024	February 8, 2029	5years
No.21 Unsecured Investment Corporate Bonds (No.4 JEI Green Bonds)	4,800	1.740%	July 16, 2024	July 14, 2034	10years
No.22 Unsecured Investment Corporate Bonds (No.5 JEI Green Bonds)	3,800	1.696%	October 30, 2024	October 30, 2034	10years

Green loans

Lender	Loan Amount	Interest Rate (Note 1)		Borrowing Period	Drawdown Date	Principal Repayment Date (Note 2)
Mizuho Bank, Ltd. MUFG Bank, Ltd. Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited	¥3.76 billion	Floating	Base interest rate (JBA three-months Yen-TIBOR) + 0.33000%	4.0 years	November 29, 2021	November 29, 2025
Mizuho Bank, Ltd. MUFG Bank, Ltd. Mizuho Trust & Banking Co., Ltd. Resona Bank, Limited	¥5.75 billion	Floating	Base interest rate (JBA three-months Yen-TIBOR) + 0.43000%	8.0 years	December 30, 2021	December 30, 2029
Sompo Japan Insurance Inc.	¥0.50 billion	Fixed	0.34000%	5.0 years	November 30, 2022	November 30, 2027
Tokio Marine & Nichido Fire Insurance Co., Ltd.	¥0.50 billion	Fixed	0.34000%	5.0 years	November 30, 2022	November 30, 2027
Mizuho Bank, Ltd. MUFG Bank, Ltd. Mizuho Trust & Banking Co., Ltd. Resona Bank, Limited	¥5.75 billion	Floating	Base interest rate (JBA three-months Yen-TIBOR) + 0.37000%	7.1 years	December 30, 2022	January 31, 2030
The Dai-ichi Life Insurance Company, Limited	¥3.00 billion	Fixed	1.30000%	10.0 years	December 7, 2023	December 7, 2033

The base interest rate (IBA three-month Yen-TIBOR) to be applied to the calculation period pertaining to the interest paid on each interest payment date is determined two business days before the drawdown date and the immediately preceding interest payment date. The current JBA Yen-TIBOR can be referenced on the website of the JBA TIBOR
Administration:http://www.jbatibor.or.jp/english/rate/ The latest information on debt financing can also be found on JEI's website.
Note that if the Principal Repayment Date is not a business day, the principal repayment date will be the subsequent business day; provided, however, that if the subsequent business day falls into the following month,the principal repayment date will be the business day preceding the drawdown date.

Total Eligible Green Projects	223,833 million yen
LTV	43.9 %
Debts of Eligible Green Projects	98,262 million yen

These are finalized figures as of the most recent fiscal period.

List of Eligible Projects

As of February 21, 2025

Property Name	Book Value (million yen)
Omori Bellport D	20,183
Shiba 2-Chome Building	8,938
JEI Hamamatsucho Building	7,900
AKASAKA INTERCITY	26,501
Daiba Garden City Building	8,883
HAMARIKYU INTERCITY	16,161
Kowa Nishi-Shimbashi Building	11,006
Mansard Daikanyama	11,016
BIZCORE AKASAKA-MITSUKE	6,090
BIZCORE JIMBOCHO	9,862
BIZCORE SHIBUYA	6,586
BIZCORE TSUKIJI	9,754
NHK Nagoya Housou-Center Building	5,450
GRAND FRONT OSAKA (Umekita Plaza・South Building)	9,601
GRAND FRONT OSAKA (North Building)	7,613
Musashikosugi Tower Place	12,210
Core City Tachikawa	5,923
Kawasaki Nisshincho Building	4,273
JEI Ryogoku Building	2,403
Nisseki Yokohama Building	21,145
JEI Hiroshima Hacchobori Building	2,958
SE Sapporo Building	4,886
JEI Naha Building	1,674
Hiroshima Dai-ichi Seimei OS Building	2,807
Total	223,833

（２）Reporting

Assessment Rank of Eligible Green Projects

As of February 21, 2025

Eligible Green Projects	DBJ Green Building Certification	CASBEE
Omori Bellport D	★★★	-
Shiba 2-Chome Building	★★★	S
JEI Hamamatsucho Building	-	A
AKASAKA INTERCITY	-	A
Daiba Garden City Building	-	S
HAMARIKYU INTERCITY	Residential portion　★★★★★ Office portion　★★★	S
Kowa Nishi-Shimbashi Building	-	A
Mansard Daikanyama	★★	S
BIZCORE AKASAKA-MITSUKE	-	S
BIZCORE JIMBOCHO	★★★	-
BIZCORE SHIBUYA	-	S
BIZCORE TSUKIJI	-	S
NHK Nagoya Housou-Center Building	-	S
GRAND FRONT OSAKA (Umekita Plaza・South Building)	-	South Building S Umekita Plaza A
GRAND FRONT OSAKA (North Building)	-	S
Musashikosugi Tower Place	-	S
Core City Tachikawa	-	S
Kawasaki Nisshincho Building	-	S
JEI Ryogoku Building	-	A
Nisseki Yokohama Building	-	S
JEI Hiroshima Hacchobori Building	-	S
SE Sapporo Building	-	A
JEI Naha Building	-	A
Hiroshima Dai-ichi Seimei OS Building	-	A

Please follow the link for the latest certifications and definitions.

Quantatative indicators of Eligible Green Projects

Term	The Number of Eligible Green Projects	Total Leasable Space （㎡）	Electricity consumption^（※）（MW/h)	Water consumption^（※）（Thousand ㎥）	CO₂ Emissions^（※）（t-CO₂)
April 2023 ～ March 2024	22	258,353.25	49,595	255.8	11,336

Limited to the scope in which JEI has authority over energy control.
These figures are for Eligible Green Projects as of the end of March 2024.