Green Finance
Sustainability-Linked Loan
As an initiative to procure funds utilizing ESG assessments, MEL has been procuring funds through Sustainability Linked Loans ("SLL"). Based on the SLL agreement, MEL will be evaluated in every assessment period based on KPI and SPTs (Sustainability Performance Targets) including the targets below that MEL stipulates toward FY 2030, and also will be granted lower loan spread as an incentive according to the achievement status. For SPTs related to each loan, please refer to the "Remarks" of the Sustainability-Linked Loan.
【KPIs】
- GHG emissions
- Green Property ratio
- Energy consumption
- GRESB Real Estate Assessment
For more details, please refer to:
Environmental Performance Data
Environmental Assessment and Certifications
Sustainability-Linked Loan
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Green Finance Framework
Use of Proceeds of Green Finance
Net proceeds from the green bonds or green loans will be used to fund the acquisition of specified assets that will meet the eligibility criteria in below (Green Eligible Assets) or refinance borrowings required for acquiring the Green Eligible Assets.
Eligible Criteria
Eligible Criteria are assets or projects that satisfy either of the following requirements.
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a.The assets for which MEL has obtained or plans to obtain the following third-party certification
- ① 5-star, 4-star or 3-star DBJ Green Building Certification
- ② S rank, A rank or B+ rank in Certification for CASBEE for Real Estate
- ③ 5-star, 4-star or 3-star BELS Evaluation
b.Renewable energy generation facilities associated with buildings (limited to solar power generation facilities on the premises)
c.Equipment designed to reduce environmental impacts (limited to equipment that achieves 30% or higher energy efficiency before introduction)
Management of Proceeds
If there are unappropriated funds at the time of issuing green bonds or green loans, MEL will disclose an appropriation plan on its website. In addition, if the property for which the proceeds will be used will no longer be a subject of the use of proceeds due to its sale, MEL will disclose this in its press release and its website.
Upper limit of green finance procurement is calculated by total acquisition price of Eligible Green Projects multiple by total asset LTV.
Reporting
MEL will publish the allocation status of the proceeds from green financing on its website once every year. If there are unappropriated funds at the time of issuing green bonds or green loans, MEL will disclose an appropriation plan on its website. In addition, if the property for which the proceeds will be used will no longer be a subject of the use of proceeds due to its sale, MEL will disclose that the unused funds that arise temporarily will be managed by the portfolio management, the balance in its green financing and the maximum amount of green eligible liabilities in its press release.
Further, as long as there remains any outstanding balance in its green financing, MEL will disclose the following benchmarks on its website once every year.
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Status of Green Building
- For detailed information : Green Building Certifications
-
Impact Reporting
- Water supply usage
- Total energy consumption (Electricity consumption and Gas fuel consumption)
- GHG emissions
- Waste management
- Annual power generation of solar panels
- Details of equipment introduced as equipment aimed at reducing environmental load and energy saving effect
- For detailed information : Environmental Performance Data
Amount of Procured Funds and Allocation (As of September 29, 2023)
（Note） LTV-based Green Finance (Debt) Capacity =Total Acquisition Price of Green Eligible Assets × The Total Asset LTV
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| No. of Properties | Amount | ||
|---|---|---|---|
| Total Properties | 34 | 271,082 million yen | |
| Eligible Criteria (Note) | 22 | 226,204 million yen | |
| CASBEE | 19 | 215,079 million yen | |
| BELS | 18 | 180,743 million yen | |
（Note） When one property has obtained multiple environmental certifications and evaluations, it is counted as one property.
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| Funds | Procurement Date | Repayment Date/ Redemption Date |
Allocation | Use of Initial Funds | ||
|---|---|---|---|---|---|---|
| Green Loan (Sumitomo Mitsui Banking Corporation) |
1,350 million yen | Mar. 9, 2021 | Mar. 9, 2025 | allocated | Acquisition of Logicross Osaka(additional acquisition of 40%) and Logicross Naogya Kasadera(additional acquisition of 40%) |
|
| Green Loan (Mizuho Bank) |
720 million yen | Sep. 14, 2021 | Sep. 14, 2028 | allocated |
Aquisition of Logicross Fukuoka Hisayama, LOGIPORT Sagamihara (49% co-ownership interest), LOGIPORT Hashimoto (45% co-ownership interest), and MJ Logipark Kazo 1 |
|
| Green Bond | 2,000 million yen | Apr. 14, 2021 | Apr. 14, 2036 | allocated |
Acquisition of LOGIPORT Osaka Taisho(20% co-ownership interest), Logicross Osaka(additional acquisition of 40%) and Logicross Naogya Kasadera(additional acquisition of 40%) |
|
| Green Loan (Mizuho Bank) |
1,000 million yen | Mar. 1, 2022 | Mar. 1, 2031 | allocated |
Acquisition of Logicross Atsugi Ⅱ and LOGIPORT Kawasaki Bay (45% co-ownereship interest) |
|
| Green Loan (Shinkin Central Bank) |
2,000 million yen | Mar. 1, 2032 | allocated | |||
| Green Loan (Shinsei Bank) |
1,000 million yen | allocated | ||||
| Green Loan (The Yamaguchi Bank) |
1,000 million yen | allocated | ||||
| Green Loan (Sumitomo Mitsui Banking Corporation) |
1,000 million yen | Oct. 25, 2022 | Oct. 31, 2026 | allocated |
Acquisition of LOGiSTA･Logicross Ibaraki Saito (A) (45% co-ownership interest) and LOGiSTA･Logicross Ibaraki Saito (B) (45% co-ownership interest) |
|
| Green Loan (Daishi Hokuetsu Bank) |
1,000 million yen | Oct. 31, 2027 | allocated | |||
| Green Loan (The Chiba Bank) |
2,000 million yen | allocated | ||||
| Green Loan (Mizuho Bank) |
1,000 million yen | Oct. 31, 2031 | allocated | |||
| Green Loan (Sumitomo Mitsui Banking Corporation) |
2,880 million yen | Dec. 14, 2022 | Oct. 25, 2026 | allocated |
Acquisition of Logicross Fukuoka Hisayama, LOGIPORT Sagamihara (49% co-ownership interest), LOGIPORT Hashimoto (45% co-ownership interest), MJ Logipark Fukuoka 1, MJ Logipark Kazo 1, Logicross Atsugi and Logicross Kobe Sanda |
|
| Green Loan (The Yamaguchi Bank, Ltd.) |
1,500 million yen | Mar. 14, 2023 | Sep. 1, 2032 | allocated |
Acquisition of Logicross Yokohama Kohoku, Logicross Ibaraki Saito (A) (45% co-ownership interest), LOGiSTA･Logicross Ibaraki Saito (B)(45% co-ownership interest), MJ Logipark Inzai 1, MJ Logipark Takatsuki 1 |
|
| Green Bond | 2,500 million yen | Jul. 25, 2023 | Jul. 25, 2033 | allocated |
Acquisition of Logicross Fukuoka Hisayama, LOGIPORT Sagamihara (49% co-ownership interest), LOGIPORT Hashimoto (45% co-ownership interest), MJ Logipark Kazo 1, MJ Logipark Fukuoka 1, LOGIPORT Kawasaki Bay (45% co-ownereship interest), Logicross Atsugi Ⅱ |
|
| Green Loan (Mizuho Bank) |
1,330 million yen | Sep. 14, 2023 | Sep. 14, 2030 | allocated |
Acquisition of Logicross Fukuoka Hisayama, LOGIPORT Sagamihara (49% co-ownership interest), LOGIPORT Hashimoto (45% co-ownership interest), MJ Logipark Kazo 1, MJ Logipark Osaka 1, MJ Logipark Fukuoka 1 |
|
| Green Loan (The Gunma Bank) |
300 million yen | Sep. 29, 2023 | Sep. 29, 2028 | allocated | Acquisition of MJ Logipark Kakogawa 1 | |
| Green Loan (Daishi Hokuetsu Bank) |
300 million yen | allocated | ||||
| Green Loan (Shinkin Central Bank) |
500 million yen | Sep. 29, 2032 | allocated | |||
| Total Green Finace (Debt) | 23,380 million yen | |||||
| LTV-based Green Finance (Debt) Capacity (As of September 29, 2023) |
85,957 million yen | |||||
Evaluation by Third-Party Entities
MEL has obtained a Green 1(F) (highest for JCR Green Bond Evaluation) rating in preliminary evaluation for the competence of its Green Finance Framework from Japan Credit Rating Agency, Ltd. (JCR). Please refer to JCR’s website.
- For detailed information : JCR Green Finance Framework Assessment
Green Equity Framework
Use of Proceeds of Green Equity
Net proceeds from Green Equity Offering will be used to fund the acquisition of specified assets that will meet the eligibility criteria in below (Green Eligible Assets) or refinance borrowings required for acquiring the Green Eligible Assets.
Eligibility Criteria
Eligible Criteria are assets or projects that satisfy one of the following requirements.
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a.Properties that obtained or renewed, or to be acquired in the future with one of the certifications from a third-party certifier listed in (1) to (3) below.
- (1) DBJ Green Building Certification: 5, 4 or 3 stars
- (2) CASBEE Certification: S, A or B+
- (3) BELS Evaluation: 5, 4 or 3 stars
b.Renewable energy generation facilities associated with buildings
(limited to solar power generation facilities on the premises)c.Equipment designed to reduce environmental impacts
(limited to equipment that achieves 30% or higher energy efficiency before introduction)
Management of Proceeds
Net proceeds from the Green Equity Offering will be used to the acquisition of new or existing properties or to refinance immediately after the execution of that. The proceeds from the Green Equity Offering are managed in cash or cash equivalents until the fully allocated to the eligible green projects.
Reporting
MEL will disclose the allocation plans with respect to the appropriation of proceeds from the Green Equity Offering, if any, that is not yet allocated at the time of issuance of the investment units. In addition, regarding the status of allocation of proceeds and the following impact reporting, the amount to be appropriated and the detail of subjected property to be appropriated shall be disclosed promptly. Disclosure of the allocation status shall be completed upon the allocation of the proceeds are completed.
＜Status of Green Building＞
Number, Type, and Rank of environmental certifications of the assets
- For detailed information : Green Building Certifications
＜Environmental Benefit＞
*Disclose on a portfolio basis considering confidential information of MEL.
Water usage
Total energy consumption (electricity consumption and gas/fuel consumption)
GHG emissions
Waste discharge weight
Solar power electricity generation
Details of equipment and facilities installed to reduce environmental impacts and energy efficiency(saving) benefits.
- For detailed information : Environmental Performance Data
Amount of Procured Funds and Allocation
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| Funds | Payment Date | Date of Allocation | Allocation | Use of Initial Funds | |
|---|---|---|---|---|---|
| 5th Follow-on Offering | 22,042 million yen |
Mar. 1, 2022 | Mar. 1, 2022 | allocated |
Acquisition of Logicross Atsugi Ⅱ and LOGIPORT Kawasaki Bay (45% co-ownereship interest) |
Evaluation by Third-Party Entities
MEL formulated “Green Equity Framework” with reference to the four elements indicated by the Green Bond Principles stipulated by the International Capital Market Association (ICMA) and the Green Bond Guidelines by the Ministry of the Environment. MEL has obtained a second-party opinion for the eligibility of the “Green Equity Framework” from DNV GL, a third-party ESG evaluation agency.
- For detailed information : DNV SECOND-PARTY OPINION
＜Disclaimer＞
Our Green Equity Framework and DNV’s second opinion related thereto are available here, consistent with our past disclosure practice with respect to our financings. These documents do not constitute an offer or sale of our securities in Japan, the United States or any other jurisdiction. Neither we nor Mitsubishi Jisho Investment Advisors, Inc., our asset manager, are experts in green equity assessment, nor do we have the ability to assess or independently verify the assessment provided to us by DNV. The information contained in the Green Equity Framework or DNV’s second opinion should not be relied upon in making an investment decision with respect to any of our securities.