Green Finance

Green Finance Initiatives

NBF has established a green finance framework with an aim to obtain more than 10 billion yen green finance.

Outline of Green Finance Framework

1.Use of Procured funds

NBF will use the procured funds to acquire assets that meet the eligibility criteria (“Eligible Green Assets”), or to repay the loans taken out/redeem the investment corporation bonds (including green bonds) issued for the acquisition.

2.Eligibility Criteria

Assets that have already received or are expected to receive any of the following certifications given by third-party certification bodies are considered eligible.

  • Five, four, or three stars in the DBJ Green Building Certification
  • Five, four, or three stars in the BELS assessments
  • S, A, or B+ grade in the CASBEE for real estate certification

3.Evaluation and Selection of Projects

Candidate projects are selected by NBF and the Real Estate Investment Department of Investment & Finance Group of NBFM. Final selection is made with the decision of the President after deliberation at the Investment Review Meeting consisting of general managers or higher ranked personnel of each department and deliberation at the Executive Board.

4.Management of Procured funds

The funds procured by NBF are managed under the portfolio approach. As long as there is an outstanding balance of green finance, the Finance Department of the Investment & Finance Group of NBFM ensures that the outstanding balance of green finance will not exceed the total acquisition price of Eligible Green Assets each year. Unappropriated funds are managed in cash and cash equivalents.

5.Reporting

NBF discloses the following items once a year on its website.

  • Property names of Eligible Green Assets and the total acquisition price
  • Amount of eligible green debt
  • Outstanding balance of green finance
  • Types and ratings of green building certifications given to Eligible Green Assets*1
  • Energy-based CO2 emissions, etc.*2
  • Please click here to see types and ratings of green building certifications given to Eligible Green Assets.
  • Please click here to see energy-based CO2 emissions, etc.

as of November 1, 2022

Total acquisition price of Eligible Green Assets 1,301.2 billion yen
Amount of green eligible debt 1,301.2 billion yen
Outstanding balance of green finance 40.0 billion yen

Status of appropriation of funds from NBF’s green finance is as follows.

Green finance 40.0 billion yen
 Green bonds 5.0 billion yen
 Green loans 35.0 billion yen

Summary of Investment Corporation Bonds

Name of Investment Corporation Bonds Total Amount of Bonds to be Issued Interest rate Date of Payment Date of Redemption Specific use
No.20 Unsecured Investment Corporation Bonds
(with special pari passu conditions among specified investment corporation bonds)
(Green Bonds)
(hereinafter referred to as “Green Bonds”)
5 billion yen 0.150% March 22,2021 March 19,2026 Osaki Bright Tower,
Nagoya Mitsui Main Bldg.,
and Nagoya Mitsui New Bldg.
  • NBF has obtained a second-party opinion from Sustainalytics as a third-party evaluation of the Green Finance Framework. Please refer to the following URL on the details of the second-party opinion.

Summary of Green Loans

Lender Amount Borrowed Interest Rate Expected Date of Implementation Repayment Due Date Specific use
Nippon Life Insurance Company ¥5 billion 0.425% March 23, 2022 January 30, 2032 IIDABASHI GRAND BLOOM (Additional Acquisition)
Sumitomo Mitsui Trust Bank, Ltd. ¥5 billion 0.450% March 30, 2022 March 30, 2032
Mizuho Bank, Ltd. ¥10 billion Floating interest rate* May 27, 2022 May 27, 2032
The Gunma Bank,Ltd. ¥1 billion 0.539% October 31, 2022 October 31, 2029 Toyosu Bayside Cross Tower
THE SHIGA BANK,LTD. ¥1 billion 0.616% October 31, 2030
The Norinchukin Bank ¥1 billion 0.616% October 31, 2030
Nippon Life Insurance Company ¥5 billion 0.712% April 30, 2032
THE SHIGA BANK,LTD. ¥1 billion 0.767% October 29, 2032
The Yamaguchi Bank,Ltd. ¥1 billion 0.855% October 31, 2033
SUMITOMO LIFE INSURANCE COMPANY ¥1 billion 0.931% October 31, 2034
Mizuho Trust & Banking Co., Ltd. ¥4 billion Floating interest rate* November 1, 2022 November 1, 2034
  1. Home
  2. Environment Initiatives
  3. Green Finance