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 |
- The interest rate applicable to each interest payment will be published from time to time at NBF's website (https://www.nbf-m.com/nbf_e/ir/borrowings.html).