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 Linked Loan Framework
Overview of the Sustainability Linked Loan Framework
With a view to procuring the Sustainability Linked Loan, MFLP-REIT has developed the Framework, the first time for J-REIT.
Under the Framework, “CO2 emission intensity in logistics facilities (Scope 1 and 2)” was selected as a KPI (the "KPI"), and the following SPT was established based on the KPI.
Sustainability Linked Loans are loan products that aim to help borrowers and lenders achieve sustainability by incentivizing the achievement of ambitious SPTs predetermined by the borrower.
The selection of KPI
The KPI "energy conservation and reduction of CO2 emissions" selected for this framework corresponds to "reduction of environmental impact and energy generation" among the six priority action items in the "VISION 2025" ,which policy of Mitsui Fudosan Group. It is also consistent with the content of the environmental KPI set by MFLP-REIT in March 2022.
Measurement of SPT
In the "CO2 emissions intensity of logistics real estate (base year: 2016)" section of the environmental KPI set in March 2022, MFLP-REIT has set a target of 100% reduction by 2030 compared to the base year for the owner-managed portion (Scope 1 and 2).
If the loan term ends before 2030, reduction targets shall be set for the individual loan term, as necessary, and shall be specified in the Loan Agreement and other documents.
Characteristics of the Loan
The borrowing rate will be linked to the degree of achievement of the SPT as follows:
| Details of SPT determination | Incentive/Disincentive | |
|---|---|---|
| ① | Scope 1 and 2: Reduce CO2 emissions intensity from logistics real estate by 100% by 2030 compared to 2016 (base year) | Reduction of applicable interest rates upon achievement of SPT |
| ② | Scope 1 and 2: Reduce CO2 emissions intensity from logistics real estate in 2030 below 2016 (base year) | Increase in applicable interest rate when SPT not achieved |
The specific applicable interest rate linkage range shall be separately stipulated in the Loan Agreement, etc. for each individual loan.
In cases where reduction targets are set for individual loan periods, the details of the determination of SPT and the applicable conditions shall also be separately stipulated in the Loan Agreement, etc.
External Review
MFLP-REIT has gotten Rating and Investment Information, Inc. to obtain the second opinion that the Framework complies with the "Sustainability Linked Loan Principles" and the Ministry of Environment Guidelines on “Expectations for Sustainability Linked Loans”. The second opinion is available on their website.
Borrowing Status of Sustainability Linked 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 | Status of fund allocation |
Remarks | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sumitomo Mitsui Banking Corporation | Long-term | 500 | 0.50％ | Fixed | Feb 01, 2023 | Feb 01, 2027 | 22nd | 4 years | allocated | Unsecured Non-guaranteed |
|
| Sumitomo Mitsui Banking Corporation | Long-term | 400 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| Sumitomo Mitsui Trust Bank, Limited | Long-term | 500 | 0.5875％ | Fixed | Feb 01, 2023 | Feb 01, 2027 | 22nd | 4 years | allocated | Unsecured Non-guaranteed |
|
| Mizuho Bank, Ltd. | Long-term | 500 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| MUFG Bank, Ltd. | Long-term | 300 | 0.5375％ | Fixed | Feb 01, 2023 | Feb 01, 2027 | 22nd | 4 years | allocated | Unsecured Non-guaranteed |
|
| Mizuho Trust & Banking Co., Ltd. | Long-term | 500 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| The Bank of Fukuoka | Long-term | 500 | 1.0175％ | Fixed | Feb 01, 2023 | Aug 01, 2030 | 29th | 7.5 years | allocated | Unsecured Non-guaranteed |
|
| Nippon Life Insurance Company | Long-term | 500 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| The Norinchukin Bank | Long-term | 500 | 0.9663％ | Fixed | Feb 01, 2023 | Feb 01, 2030 | 28th | 7 years | allocated | Unsecured Non-guaranteed |
|
| The Yamaguchi Bank, Ltd. | Long-term | 500 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| Shinkin Central Bank | Long-term | 500 | 1.2265％ | Fixed | Feb 01, 2023 | Aug 01, 2032 | 33rd | 9.5 years | allocated | Unsecured Non-guaranteed |
|
| Sumitomo Life Insurance Company | Long-term | 500 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| The Chiba Bank, Ltd. | Long-term | 400 | 1.0175％ | Fixed | Feb 01, 2023 | Aug 01, 2030 | 29th | 7.5 years | allocated | Unsecured Non-guaranteed |
|
| SBI Shinsei Bank, Limited | Long-term | 500 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| The Joyo Bank, Ltd. | Long-term | 400 | 1.0175％ | Fixed | Feb 01, 2023 | Aug 01, 2030 | 29th | 7.5 years | allocated | Unsecured Non-guaranteed |
|
| Daishi Hokuetsu Bank, Ltd. | Long-term | 400 | 0.9663％ | Fixed | Feb 01, 2023 | Feb 01, 2030 | 28th | 7 years | allocated | Unsecured Non-guaranteed |
|
| The Bank of Kyoto, Ltd. | Long-term | 400 | 1.2265％ | Fixed | Feb 01, 2023 | Aug 02, 2032 | 33rd | 9.5 years | allocated | Unsecured Non-guaranteed |
|
| Momiji Bank Ltd. | Long-term | 400 | 1.2265％ | Fixed | Feb 01, 2023 | Aug 02, 2032 | 33rd | 9.5 years | allocated | Unsecured Non-guaranteed |
|
| The Keiyo Bank, Ltd. | Long-term | 400 | 1.0175％ | Fixed | Feb 01, 2023 | Aug 01, 2030 | 29th | 7.5 years | allocated | Unsecured Non-guaranteed |
|
| The Yamagata Bank Ltd. | Long-term | 400 | 0.9663％ | Fixed | Feb 01, 2023 | Feb 01, 2030 | 28th | 7 years | allocated | Unsecured Non-guaranteed |
|
| Kiraboshi Bank, Ltd. | Long-term | 300 | 0.9663％ | Fixed | Feb 01, 2023 | Feb 01, 2030 | 28th | 7 years | allocated | Unsecured Non-guaranteed |
|
| Kiraboshi Bank, Ltd. | Long-term | 200 | 1.2743％ | Fixed | Feb 01, 2023 | Feb 01, 2033 | 34th | 10 years | allocated | Unsecured Non-guaranteed |
|
| The Hachijuni Bank, Ltd. | Long-term | 500 | 1.0175％ | Fixed | Feb 01, 2023 | Aug 01, 2030 | 29th | 7.5 years | allocated | Unsecured Non-guaranteed |
|
| Sumitomo Mitsui Banking Corporation | Long-term | 1,700 | 1.1300％ | Fixed | Feb 01, 2024 | Feb 02, 2032 | 32nd | 8 years | allocated | Unsecured Non-guaranteed |
|
| Mizuho Bank, Ltd. | Long-term | 1,200 | 1.3238％ | Fixed | Feb 01, 2024 | Feb 01, 2034 | 36th | 10 years | allocated | Unsecured Non-guaranteed |
|
| The Norinchukin Bank | Long-term | 1,000 | 1.2275% | Fixed | Feb 01, 2024 | Feb 01, 2033 | 34th | 9年 | allocated | Unsecured Non-guaranteed |
|
| The Joyo Bank, Ltd. | Long-term | 1,000 | 1.13％ | Fixed | Feb 01, 2024 | Feb 02, 2032 | 32nd | 8 years | allocated | Unsecured Non-guaranteed |
|
| Daishi Hokuetsu Bank, Ltd. | Long-term | 1,000 | 0.9888％ | Fixed | Feb 01, 2024 | Feb 03, 2031 | 30th | 7 years | allocated | Unsecured Non-guaranteed |
|
| Resona Bank, Limited | Long-term | 1,500 | Base rate +0.2375% (*1) |
Floating | Feb 01, 2024 | Aug 01, 2033 | 35th | 9.5 years | allocated | Unsecured Non-guaranteed |
|
| The Keiyo Bank, Ltd. | Long-term | 500 | 0.9888％ | Fixed | Feb 01, 2024 | Feb 03, 2031 | 30th | 7 years | allocated | Unsecured Non-guaranteed |
|
| The Yamagata Bank Ltd. | Long-term | 700 | 1.2756％ | Fixed | Feb 01, 2024 | Aug 01, 2033 | 35th | 9.5 years | allocated | Unsecured Non-guaranteed |
|
| Sumitomo Mitsui Banking Corporation | Long-term | 1,000 | 1.145％ | Fixed | Feb 05, 2024 | Feb 05, 2032 | 32nd | 8 years | allocated | Unsecured Non-guaranteed |
|
| Mizuho Trust & Banking Co., Ltd. | Long-term | 500 | Base rate +0.225% (*1) |
Floating | Feb 05, 2024 | Feb 07, 2033 | 34th | 9 years | allocated | Unsecured Non-guaranteed |
|
| Mizuho Trust & Banking Co., Ltd. | Long-term | 600 | Base rate +0.225% (*1) |
Floating | Mar 01, 2024 | Feb 07, 2033 | 34th | 9 years | allocated | Unsecured Non-guaranteed |
|
| The Chiba Bank, Ltd. | Long-term | 1,000 | 0.9563% | Fixed | Mar 15, 2024 | Mar 17, 2031 | 30th | 7 years | allocated | Unsecured Non-guaranteed |
|
| Sumitomo Mitsui Banking Corporation | Long-term | 1,400 | 1.0975% | Fixed | Mar 15, 2024 | Mar 15, 2032 | 32nd | 8 years | allocated | Unsecured Non-guaranteed |
|
| Shinkin Central Bank | Long-term | 1,500 | 1.0975% | Fixed | Mar 15, 2024 | Mar 15, 2032 | 32nd | 8 years | allocated | Unsecured Non-guaranteed |
|
| Resona Bank, Limited | Long-term | 500 | Base rate +0.2125% (*1) |
Floating | Mar 15, 2024 | Sep 15, 2032 | 33rd | 8.5 years | allocated | Unsecured Non-guaranteed |
|
| The Norinchukin Bank | Long-term | 500 | 1.195% | Fixed | Mar 15, 2024 | Mar 15, 2033 | 34th | 9 years | allocated | Unsecured Non-guaranteed |
|
| SBI Shinsei Bank, Limited | Long-term | 1,200 | 1.195% | Fixed | Mar 15, 2024 | Mar 15, 2033 | 34th | 9 years | allocated | Unsecured Non-guaranteed |
|
| Mizuho Bank, Ltd. | Long-term | 800 | 1.2888% | Fixed | Mar 15, 2024 | Mar 15, 2034 | 36th | 10 years | allocated | Unsecured Non-guaranteed |
|
| Total | 27,600 | - | |||||||||
*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/).
Click here for the List of Interest-Bearing Debt
Reporting and Verification
MFLP-REIT shall submit evidence to the Lender regarding SPT results (Reduction rate of CO2 emissions intensity for Scope 1 and 2 compared to the base year) for the previous calculation year by June 30 of each calculation year, regardless of whether the SPT is determined or not. However, if MFLP-REIT has publicized the same information on website, etc., submission of the materials is not required.