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 sustainability even further, by procuring funds through sustainability finance.
Overview of the 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
|(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
|(1)||Basic infrastructure development to revitalize the local community
Real estate that utilizes the land lot in a way that contributes to “urban development (machi-zukuri)” of the surrounding area such as providing recreational green space based on the needs of the local society.
|(2)||Access to essential services for daily life
Real estate with adequate countermeasures to disaster such as evacuation centers used in the event of a disaster or has stockpiles of supplies for local residents.
Real estate that contributes to the local community such as having an authorized nursery center in the property.
|(3)||Socio-economic improvement and empowerment
Contributions to local societies and economies such as job creation by tenant companies and utilization of local companies in construction projects.
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 fiscal year-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.
Sustainability Bond Issuance
1st Unsecured Bonds (Special pari passu conditions among specified investment corporation bonds) (Sustainability Bonds)
|Total issue amount||3,000 million yen|
|Issuance date||Feb. 12, 2021|
|Redemption date||Feb. 12, 2031|
|Others||Unsecured, not guaranteed|
The following items will be disclosed on the MFLP-REIT website as at the end of January of each year so long as the balance of sustainability finance is outstanding.
■Total amount of allocated Proceeds
■Amount of proceeds not yet allocated
■Reporting on Environmental Improvement Effects
■Reporting on Social Benefits
Number of Eligible Social Assets
(1)Basic infrastructure development to revitalize the local community
・Overview of the project (Target Assets)
・Number of facilities equipped with seismic isolation structures
(2)Access to essential services
・Number of facilities designated as evacuation sites in the event of a disaster
・Number of facilities equipped with disaster relief vendors
・Number of facilities equipped with emergency supply stockpiles
・Number of facilities equipped with cooking bench*
・Number of facilities equipped with emergency toilets
・Number of facilities equipped with emergency power supply
・Number of licensed nursery centers
(3)Socio-economic improvement and empowerment
The following items are related to the promotion of the employment of local residents.
・Number of facilities hiring local residents
・Number of facilities hiring local companies for construction work
|*||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.|
For eligibility of the Sustainability Finance Framework, MFLP-REIT has been assigned “SU 1 (F),” the highest evaluation grade in the JCR Sustainability Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR).
For eligibility of the sustainability bond, MFLP-REIT has been assigned JCR as below.