Environment

Green Bond

Green Bond

Issuing Green Bonds

As part of its efforts to maintain sustainability for the environment and society as a whole, JMF has issued the Green Bond, the first such issuance from a J-REIT in May 2018. Through the issuance of the Green Bond, JMF 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 MCUBS’ 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

JMF 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 JMF’s interest-bearing liabilities ratio.
 
The maximum outstanding amount of Green Bond proceeds is ¥143.2 billion, and JMF currently issues ¥23.5 billion (as of the end of June 2021).
Management of Green Bond proceeds
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

JMF 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 JRF Green Bonds
(The 12th Unsecured Investment Corporation Bonds)
The 2nd JRF Green Bonds
(The 13th Unsecured Investment Corporation Bonds)
The 1st JMF Green Bonds
(The 1st Unsecured Investment Corporation Bonds)
The 2nd JMF Green Bonds
(The 2nd Unsecured Investment Corporation Bonds)
Issued Amount (million yen) 8,000 7,000 8,500 5,000
Interest Rate 0.210% 0.200% 0.450% 0.140%
Issue Date May 25, 2018 June 25, 2019 June 25, 2021 December 7, 2021
Maturity Date May 25, 2023 June 25, 2024 June 25, 2031 December 7, 2026
Remarks Unsecured, Unguaranteed Unsecured, Unguaranteed Unsecured, Unguaranteed Unsecured, Unguaranteed
Assessment*3 GA1 - - -
Release Notice Concerning Issuance of the 1st JRF Green Bonds Notice Concerning Issuance of the 2nd JRF Green Bonds Notice Concerning Issuance of the 1st JMF Green Bonds Notice Concerning Issuance of the 2nd JMF Green Bonds
*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

  Eligible Green Projects Non-Eligible Green Projects
No. of
properties*2
% Total floor area*2 % No. of
properties*2
% Total floor area*2 %
2020 19 properties 16.0% 1,199,580.52m2 39.1% 100 properties 84.0% 1,867,605.27m2 60.9%
2019*1 20 properties 21.1% 1,361,363.21m2 52.8% 75 properties 78.9% 1,215,764.76m2 47.2%
2018*1 15 properties 15.8% 917,913.11m2 34.5% 80 properties 84.2% 1,742,457.00m2 65.5%
2017*1 21 properties 22.8% 1,527,527.86m2 54.5% 71 properties 77.2% 1,272,713.06m2 45.5%
Aggregation period
  2020: March 2020 – February 2021
  2019: March 2019 – February 2020
  2018: March 2018 – February 2019
  2017: March 2017 – February 2018
*1 Figures before 2019 are the figures of former Japan Retails Fund Investment Corporation.
*2 Excluding land with leasehold interest

2. Eligible Green Projects: Energy Consumption

  Electricity
Electricity
(Mwh)
Fuel
Fuel
(Mwh)
Water
Water
(Thousand m3)
  CO2 emissions
CO2 emissions*2
(Thousand tCO2)
2020 129,524 32,431 1,032 57
2019*1 213,921 71,248 1,551 118
2018*1 137,234 29,561 922 77
2017*1 219,243 84,527 1,452 129
Aggregation period
  2020: March 2020 – February 2021
  2019: March 2019 – February 2020
  2018: March 2018 – February 2019
  2017: March 2017 – February 2018
*1 Figures before 2019 are the figures of former Japan Retails Fund Investment Corporation.
*2 When converting energy consumption into CO2 emissions, we use the calculation methods and emissions factors stipulated by the Act on Promotion of Global Warming Countermeasures. The CO2 emissions listed above are the total value of Scope 1 and Scope 2 emissions; Scope 3 emissions have not been included.
Japan Metropolitan Fund Investment Corporatio