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 May 31, 2022

Total acquisition price of Eligible Green Assets 1,193.6 billion yen
Amount of green eligible debt 1,193.6 billion yen
Outstanding balance of green finance 25.0 billion yen

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

Green finance 25.0 billion yen
 Green bonds 5.0 billion yen
 Green loans 20.0 billion yen

Summary of Investment Corporation Bonds

Name of Investment
Corporation Bonds
Nippon Building Fund, Inc. No.20 Unsecured Investment Corporation Bonds (with special pari passu conditions among specified investment corporation bonds) (Green Bonds) (hereinafter referred to as “Green Bonds”)
Date of Payment March 22,2021
Date of Redemption March 19,2026
Term(Years) 5 years
Total Amount of Bonds to
be Issued
5 billion yen
Interest rate 0.15%
Specific use Acquisition of Osaki Bright Tower, Nagoya Mitsui Main Bldg., and Nagoya Mitsui New Bldg. (Osaki Bright Tower, Nagoya Mitsui Main Bldg., and Nagoya Mitsui New Bldg. are the Eligible Green Projects aligned with the Eligibility Criteria defined in "Submission of Amended Shelf Registration Statement for Issuance of Green Bonds")
  • 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 ①Nippon Life Insurance Company ②Sumitomo Mitsui Trust Bank, Ltd. ③Mizuho Bank, Ltd.
Borrowing Date ①2022.3.23 ②2022.3.30 ③2022.5.27
Repayment Date ①2032.1.30 ②2032.3.30 ③2032.5.27
Term ①9 years 10 months ②10 years ③10 years
Balance ①5 billion yen ②5 billion yen ③10 billion yen
Interest Rate ①0.425% ②0.45% ③Floating interest rate*
Specific use ①②③Additional acquisition of IIDABASHI GRAND BLOOM
(CASBEE Real Estate Evaluation Certification S Rank)
  1. Home
  2. Environment Initiatives
  3. Green Finance