Green Finance

 SPI and the Asset Management Company aim to strengthen the funding platform by expanding the investor base interested in ESG investment and lending, along with promoting sustainability initiatives, by procuring funds through green financing (green bonds, green loans, etc.) as part of its ESG initiatives.

Outline of the Green Finance Framework

The green finance framework was formulated in line with the “Green Bond Principles (2021)” formulated by the International Capital Market Association (ICMA), the “Green Loan Principles (2021)” stipulated by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) and the “Green Bond Guidelines (2020)” and the “Green Loan and Sustainability Linked Loan Guidelines (2020)” stipulated by the Ministry of the Environment of Japan. For eligibility of the green finance framework, SPI has acquired a “Green 1 (F)” rating, the highest evaluation grade in the JCR Green Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR), a third-party evaluation institution.

For details, please see JCR Green Finance Framework Evaluation.

  • Use of funds
    Funds procured through green finance will be allocated to funds for the acquisition and renovation of green buildings which meet the following eligibility criteria as well as for the refinancing of these funds.
  • Eligibility Criteria (Green Criteria)
    Eligible Green Assets refer to assets that meet either Green Criteria-1 or Green Criteria-2
    (1) Green Criteria-1
    Buildings that have or will have one of the following environmental certifications valid
    • ① DBJ Green Building Certification: five stars, four stars or three stars
    • ② CASBEE Appraisal: rank S, A, or B+
    • ③ BELS Certification: five stars, four stars or three stars
    (2) Green Criteria-2
    Renovation of assets under management with the objective to enhance energy efficiency, reduce water usage, and any    other environmental benefits
    (i.e. reduction of electricity and water usage by 30% or more)

Project Evaluation and Selection Process

 The Financial Control and Administration Division of the Asset Management Company will select projects for which the funds will be used, and the ESG Committee consisting of the Representative Director acting as ESG Chief Officer and the General Manager of the Financial Control and Administration Division acting as ESG Executive Officer will verify and assess whether the projects meet the eligibility criteria.

 Implementation of green finance will follow verification of eligibility of the project by the ESG Committee and deliberation and approval by the Investment Committee and Board of Directors.

Management of Proceeds

 Proceeds shall be promptly allocated to projects for which the funds are to be used. The Financial Control and Administration Division shall conduct follow-up management.

 If unallocated funds are generated such as due to the sale of a property targeted by funds, such shall be allocated to funds for the acquisition of other projects meeting the eligibility criteria. The unallocated funds are scheduled to be managed as cash or cash equivalent until allocated.

Reporting

Allocation of proceeds

Name Amount procured
(million yen)
Amount allocated
(million yen)
Amount unallocated
(million yen)
Third Series Unsecured Investment Corporation Bond(green bond) 1,500 1,500 -

Issuance of green bonds

Name Issue amount
(million yen)
Interest rate Issue date Redemption date Use of funds
Third Series Unsecured Investment Corporation Bond(green bond) 1,500 0.800% November 18, 2021 November 18, 2031 Proceeds will be allocated to funds for the repayment of borrowings required for the acquisition of Proceed Monzennakacho and Proceed Maihama

Issuance of green bonds

NO. Property name Acquisition date DBJ Green Building Certification CASBEE Certification BELS Certification Acquisition price
(million yen)
Total floor area(m2)
C-83 Proceed Monzennakacho June 10, 2021 - - ★★★★ 1,240 1,777.37
C-84 Proceed Maihama June 10, 2021 - - ★★★ 1,029 2,151.57
G-34 Proceed Sendai Kamisugi April 22, 2022 - - ★★★ 1,560 3,750.27
Total for Eligible Green Assets 3 properties 3,829 7,679.21

Environmental Performance Results of Eligible Green Assets(As of April 30,2022)

Item FY2021
Energy usage(MWh) 27
GHG(CO2) emissions(t-CO2) 12
Water usage(m3) 36
  • The aggregation period is May of 2021 to April of 2022.
  • The energy usage, GHG(CO2) emissions and water usage results are aggregated from only the common areas of each property.
  • GHG(CO2) emissions are calculated by the Asset Management Company based on adjusted emission coefficients, etc. published by the Ministry of the Environment for each electricity utility.