MFLP-REIT aims to strengthen the funding base by expanding the group of investors interested in ESG investment and financing, along with promoting initiatives for ESG even further, by procuring funds through ESG finance.
Sustainability Finance Framework
Overview of the Sustainability Finance Framework
Sustainability Finance Framework
Use of Proceeds from sustainability finance
The proceeds (the “Proceeds”) from sustainability finance shall be allocated towards the acquisition of specific assets (“Eligible Green Assets” and “Eligible Sustainable Assets” under sustainability finance, as defined below) and towards refinancing new or existing debt and bonds to acquire these assets.
Eligible Sustainable Assets
Eligible Green Assets meet the following Eligible Green Project Criteria. Eligible Sustainable Assets meet the requirements of both Eligible Green Project Criteria and Eligible Social Project Criteria (for these two types of eligible assets, hereinafter referred to as “Eligible Assets”).
Eligible Green Project Criteria
The acquisition or planned future acquisition of certification or re-certification (hereinafter “Green Building Certification”) by the following third-party certification institutions (1) to (5):
- (1) DBJ Green Building Certification: 3 stars or higher (top three certification levels)
- (2) BELS Certification: Three or more (top three certification levels)
- (3) CASBEE Appraisal: B+ or higher (top three certification levels)
- (4) LEED Certification: Silver, Gold or Platinum (top three certification levels)
- (5) Top three certification levels from any other third-party certification program
Eligible Social Project Criteria
New or existing real estate properties that meet two or more of the following criteria (1) to (3).
Management of Proceeds
The upper limit of funds raised through sustainability finance is calculated by multiplying the interest-bearing debt ratio (as of the most recent period-end that can be calculated as of the payment date or execution date of bond or loan financing) by total acquisition price of the Eligible Sustainable Assets.
External review
In a third-party evaluation of its Sustainability Finance Framework, MFLP-REIT has been assigned an “Su1(F)” evaluation, the highest of in the JCR Sustainability Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR). In addition, as a third-party evaluation of 1st Unsecured Bonds also obtained SU1 by JCR, the highest on the rating scale for the JCR Sustainability Bond Evaluation.
For details of the evaluation, please refer to JCR’s website → https://www.jcr.co.jp/en/greenfinance/
Issuance Status of Investment Corporation Bonds Utilizing this Framework
On February 12, 2021, MFLP-REIT issued its first bond as a Sustainability Bond, for which it experienced strong demand from investors with an interest in ESG.
You can scroll this table left and right.
| Lenders | Amount (Millions of yen) |
Interest Rate |
Issue date |
Redemption date |
Repayment Period |
Term | Subject Property |
Status of fund allocation |
Others |
|---|---|---|---|---|---|---|---|---|---|
| 1st Unsecured Bonds (Special pari passu conditions among specified investment corporation bonds) (Sustainability bond) |
3,000 | 0.500% | Feb. 12, 2021 |
Feb. 12, 2031 |
30th | 10 years | MFLP Kawaguchi I MFLP Ibaraki |
allocated | Unsecured Non-guaranteed Credit Rating JCR: AA |
| 2nd Unsecured Bonds (Special pari passu conditions among specified investment corporation bonds) (Green bond) |
2,000 | 0.820% | Nov. 25, 2022 |
Nov. 25, 2032 |
33rd | 10 years | MFLP Yachiyo Katsutadai MFLP Osaka Ⅰ MFLP Hiratsuka Ⅱ |
allocated | Unsecured Non-guaranteed Credit Rating JCR: AA |
| Total | 5,000 | - | |||||||
Borrowing Status of ESG Loans Utilizing this Framework
You can scroll this table left and right.
| Lenders | Classification | Amount (Millions of yen) |
Interest Rate |
Fixed / Floating |
Borrowing Date |
Maturity Date |
Repayment Period |
Term | Subject Property |
Status of fund allocation |
Others |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mizuho Bank, Ltd. （Green Loan） |
Long-term | 400 | 0.7488％ | Fixed | Aug. 02, 2022 |
Aug. 02, 2032 |
33rd | 10 years | MFLP Kuki etc(*2) | allocated | Unsecured Non-guaranteed |
| Nippon Life Insurance Company （Green Loan） |
Long-term | 500 | 0.6455％ | Fixed | Aug. 04, 2022 |
Aug. 04, 2031 |
31st | 9 years | MFLP Komaki | allocated | Unsecured Non-guaranteed |
| The Norinchukin Bank （Green Loan） |
Long-term | 500 | 0.4988％ | Fixed | Aug. 04, 2022 |
Aug. 03, 2029 |
27th | 7 years | MFLP komaki | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Banking Corporation （Green Loan） |
Long-term | 2,000 | Base rate +0.33% (*1) |
Floating | Sep. 01, 2022 |
Sep. 01, 2033 |
35th | 11 years | GLP/MFLP Ichikawa Shiohama | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Banking Corporation （Green Loan） |
Long-term | 500 | 0.50％ | Fixed | Feb. 06, 2023 |
Feb. 01, 2027 |
22th | 4 years | MFLP Hino etc(*3) | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Banking Corporation （Green Loan） |
Long-term | 500 | 1.2363％ | Fixed | Feb. 06, 2023 |
Feb. 01, 2033 |
34th | 10 years | MFLP Hino etc(*3) | allocated | Unsecured Non-guaranteed |
| MUFG Bank, Ltd. （Green Loan） |
Long-term | 1,000 | 0.63％ | Fixed | Feb. 06, 2023 |
Feb. 07, 2028 |
24th | 5 years | MFLP Hino etc(*3) | allocated | Unsecured Non-guaranteed |
| Mizuho Trust & Banking Co., Ltd. （Green Loan） |
Long-term | 500 | 1.2363％ | Fixed | Feb. 06, 2023 |
Feb. 07, 2033 |
34th | 10 years | MFLP Hino etc(*3) | allocated | Unsecured Non-guaranteed |
| MUFG Bank, Ltd. （Green Loan） |
Long-term | 2,200 | 0.6725％ | Fixed | Mar. 01, 2023 |
Mar. 01, 2028 |
24th | 5 years | GLP/MFLP Ichikawa Shiohama | allocated | Unsecured Non-guaranteed |
| The Norinchukin Bank （Green Loan） |
Long-term | 600 | 0.935％ | Fixed | Mar. 15, 2023 |
Mar. 17, 2031 |
30th | 8 years | MFLP Hiratsuka | allocated | Unsecured Non-guaranteed |
| Mizuho Trust & Banking Co., Ltd. （Green Loan） |
Long-term | 300 | 1.1163％ | Fixed | Mar. 15, 2023 |
Feb. 07, 2033 |
34th | 10 years | MFLP Hiratsuka | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Trust Bank, Limited （Green Loan） |
Long-term | 2,000 | 0.5313％ | Fixed | Sep. 01, 2023 |
Sep. 01, 2027 |
23th | 4 years | GLP/MFLP Ichikawa Shiohama | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Trust Bank, Limited （Green Loan） |
Long-term | 1,200 | 0.6225％ | Fixed | Feb. 01, 2024 |
Feb. 01, 2028 |
24th | 4 years | MFLP HIRATSUKA Ⅲ etc(*4) | allocated | Unsecured Non-guaranteed |
| MUFG Bank, Ltd. （Green Loan） |
Long-term | 1,200 | 0.52125％ | Fixed | Feb. 01, 2024 |
Feb. 01, 2027 |
22th | 3 years | MFLP HIRATSUKA Ⅲ etc(*4) | allocated | Unsecured Non-guaranteed |
| The Bank of Fukuoka （Green Loan） |
Long-term | 1,000 | Base rate +0.2% (*1) |
Floating | Feb. 01, 2024 |
Feb. 02, 2032 |
32th | 8 years | MFLP HIRATSUKA Ⅲ etc(*4) | allocated | Unsecured Non-guaranteed |
| The Hachijuni Bank, Ltd. （Green Loan） |
Long-term | 1,000 | Base rate +0.2125% (*1) |
Floating | Feb. 01, 2024 |
Aug. 02, 2032 |
33th | 8.5 years | MFLP HIRATSUKA Ⅲ etc(*4) | allocated | Unsecured Non-guaranteed |
| The Iyo Bank, Ltd. （Green Loan） |
Long-term | 1,000 | Base rate +0.25% (*1) |
Floating | Feb. 01, 2024 |
Feb. 01, 2034 |
36th | 10 years | MFLP HIRATSUKA Ⅲ etc(*4) | allocated | Unsecured Non-guaranteed |
| The Bank of Fukuoka （Green Loan） |
Long-term | 1,300 | Base rate +0.225% (*1) |
Floating | Feb. 02, 2024 |
Feb. 02, 2033 |
34th | 9 years | MFLP Kuki etc(*2) | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Trust Bank, Limited （Green Loan） |
Long-term | 1,500 | 0.6288％ | Fixed | Feb. 05, 2024 |
Feb. 07, 2028 |
24th | 4 years | MFLP Hino etc(*3) | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Banking Corporation （Green Loan） |
Long-term | 1,700 | Base rate +0.33% (*1) |
Floating | Mar. 04, 2024 |
Mar. 05, 2035 |
34th | 11 years | MFLP HiroshimaⅠ | allocated | Unsecured Non-guaranteed |
| MUFG Bank, Ltd. （Green Loan） |
Long-term | 800 | 0.5225% | Fixed | Mar. 15, 2024 |
Mar. 15, 2027 |
22nd | 3 years | MFLP Tomei Ayase | allocated | Unsecured Non-guaranteed |
| Sumitomo Mitsui Trust Bank, Limited （Green Loan） |
Long-term | 800 | 0.6088% | Fixed | Mar. 15, 2024 |
Mar. 15, 2028 |
24th | 4 years | MFLP Tomei Ayase | allocated | Unsecured Non-guaranteed |
| The Hachijuni Bank, Ltd. （Green Loan） |
Long-term | 500 | Base rate +0.2125% (*1) |
Floating | Mar. 15, 2024 |
Sep. 15, 2032 |
33rd | 8.5 years | MFLP Tomei Ayase | allocated | Unsecured Non-guaranteed |
| The Yamaguchi Bank, Ltd. （Green Loan） |
Long-term | 1,000 | 1.2419% | Fixed | Mar. 15, 2024 |
Sep. 15, 2033 |
35th | 9.5 years | MFLP Tomei Ayase | allocated | Unsecured Non-guaranteed |
| Total | 24,000 | - | |||||||||
*1 The base interest rate is the JBA three-month Japanese Yen TIBOR published by JBA. Even if the interest calculation period is less than three months, the base interest rate will be calculated using the three-month JBA Japanese Yen TIBOR.
The JBA Japanese yen TIBOR can be found on the website of the JBA TIBOR Administration (http://www.jbatibor.or.jp/english/rate/).
*2MFLP Yokohama Daikoku, MFLP Yashio, MFLP Atsugi, MFLP Funabashi Nishiura,
MFLP Kashiwa, MFLP Sakai, GLP/MFLP Ichikawa Shiohama
*3MFLP Inazawa, MFLP Atsugi Ⅱ, MFLP Fukuoka Ⅰ
*4MFLP ShinkibaⅠ, SG Realty MFLP Fukuoka Kasuya
Click here for the List of Interest-Bearing Debt
Reporting
MFLP-REIT will publish the following items each year on its website as long as there is outstanding sustainability finance.
Information as of January 31, 2024.
Status of fund allocation
The upper limit of funds raised through sustainability finance is calculated by multiplying the interest-bearing debt ratio (“LTV”, as of the most recent period-end that can be calculated as of the payment date or execution date of bond or loan financing) by total acquisition price of the Eligible Green Assets※1 (including Eligible Sustainable Assets) and the Eligible Sustainable Assets※1.
※1The total of eligible assets selected through the procedures set forth in the Framework.
※2 LTV is as of the end of 14th FP (July 31, 2023).
Reporting on environmental improvement effects
- The status of the green building assessments and certification levels
See Initiatives to Obtain Green Building Certification for details.
Reporting on social benefits
Output indicators
| Number of Eligible Social Assets |
3 properties    |
|---|
Outcome
| (1) Basic infrastructure development to revitalize the local community | ||
|---|---|---|
| Overview of the project (Target Assets) | ||
| MFLP Hino | As well as incorporating a certified child care facility that can be used not only by employees but also by local residents, the seismically isolated structure also contains stockpiles for disaster prevention. | |
| MFLP Sakai | As well as being seismically isolated, this building provides infrastructure for use in times of emergency, such as stockpiles for disaster prevention, emergency-use toilets, and disaster relief vending machines. It has also been designated a tsunami refuge by the local government. | |
| MFLP Kawaguchi I | When acquiring and developing real estate owned by the City of Kawaguchi, as well as helping to promote local industry in Kawaguchi, we also provide disaster relief services to local residents and establish spaces for their relaxation. | |
| Number of facilities equipped with seismic isolation structures |
2 properties/3 properties | |
| (2) Access to essential services | ||
| Number of facilities designated as evacuation sites in the event of a disaster | 1 property／3 properties | |
| Number of facilities equipped with disaster relief vending machines |
2 properties／3 properties | |
| Number of facilities equipped with emergency supply stockpiles |
3 properties／3 properties | |
| Number of facilities equipped with cooking bench* *The “cooking bench” is a brick-enclosed base with a seat plate placed on it. It is normally used as a bench, but it is also used as a kitchen range in the event of a disaster. |
1 property／3 properties | |
| Number of facilities equipped with emergency toilets |
2 properties／3 properties | |
| Number of facilities equipped with emergency power supply |
3 properties／3 properties | |
| Number of licensed nursery centers | 1 property／3 properties | |
| (3) Socio-economic improvement and empowerment | ||
| Number of facilities hiring local residents | 3 properties／3 properties | |
| Number of facilities hiring local companies for construction work | 3 properties／3 properties | |