Security Code:8987

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Sustainability Initiatives

JEI decided to issue of green bonds with an aim to further promote ESG activities as well as expand fund procurement methods through proactive expansion of the investor base in ESG investments.

About Green Bonds

Green Bonds are a type of bond instrument to finance Eligible Green Projects. The issuance of Green Bonds must adhere to International Capital Market Association’s (ICMA) Green Bond Principles.
JEI has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for the eligibility of Green Bond Framework. For details of the second-party opinion, please refer to the following website.

SUSTAINLYTICS http://www.excellent-reit.co.jp/site/file/tmp-afDSE.pdf

Green Bond Framework

1. Use of Proceeds from Green Bond Issuance

The net proceeds from the Green Bond issuance will be used for acquisition of assets defined in (2) below (hereinafter “Eligible Green Projects”), repayment of borrowings required in the acquisition of Eligible Green Projects or redemption of investment corporation bonds that have already been issued (including Green Bonds) required in the acquisition of Eligible Green Projects.

2. Eligible Green Projects

Eligible Green Projects are assets that have received or scheduled to receive one of the following certifications within the last 2 years as of the payment date upon issuance of Green Bonds among the specified assets owned by JEI.

1)DBJ Green Building Certification: 5, 4 or 3 stars
2)CASBEE Certification: S, A or B+ rank

Eligible Green Projects are selected by the sustainability council (a council composed of the President and other board members established to organizationally promote sustainability initiatives) of Japan Excellent Asset Management Co., Ltd., the Asset Management Company of JEI.

3. Maximum Issuance Amount of Green Bonds

The Debts of Eligible Green Projects calculated by multiplying the determined total period-end book value of Eligible Green Projects (158.8 billion yen for a total of 9 properties as of August 10, 2018 (*1)) in the latest fiscal period by total assets-based LTV determined as of the end of the latest fiscal period (end of the fiscal period ended December 2017 as of August 10, 2018) is set as the maximum issuance amount of Green Bonds.
GRESB

Allocation Report about Green Bond

The allocation report about JEI Green Bond is as follows. (as of August 10,2018)

1. Total amount of outstanding Green Bonds: 4,000 million yen

Amount of Green Bond to be issued 4,000 million yen
Issuance date August 10, 2018
Redemption date August 10, 2028
Interest rate 0.630%
Use of Funds to be procured The funds procured through the issuance of the Investment Corporation Bonds will be a located to a portion of early payment (JPY 4,000 million yen) out of short-term borrowings (JPY 6,000 million yen) used for the acquision of AKASAKA INTERCITY AIR, which is an Eligible Green Project, on July 2, 2018.

2. The Debts of Eligible Green Projects: 68,950 million yen

Property Name Book Value(※1)
(million yen)
DBJ Green Building Certification CASBEE Certification
AKASAKA INTERCITY 27,138 ★★★★★
AKASAKA INTERCITY AIR 6,590 ★★★★★
Nisseki Yokohama Building 23,934 ★★★★
Musashikosugi Tower Place 12,659 ★★★
Kowa Kawasaki Higashiguchi Building 9,483 ★★★
Kowa Kawasaki Nishiguchi Building 29,076 ★★★
HAMARIKYU INTERCITY 17,918 ★★★
Omori Bellport D 21,040 ★★★
Kowa Nishi-Shimbashi Building 11,032 ★★★ A rank
Total 158,872

Total Eligible Green Projects 158,872 million yen
LTV(※2) 43.4%
The Debts of Eligible Green Projects 68,950 million yen
(※1)
Book value as of the end of December 2017 is indicated for properties owned. Figures for properties acquired in January 2018 onwards are calculated based on acquisition price.
(※2)
LTV (Loan to Value) is as of the end of December 2017.
For details, please refer to “Notice Concerning Amendment to Shelf Registration Statement for Green Bond Issuance” dated July 6, 2018.
http://www.excellent-reit.co.jp/site/file/tmp-vXpph.pdf

Reporting

After the issuance of green bonds, JEI reports the total amount of Eligible Green Projects, The Debts of Eligible Green Projects and the amount of outstanding green bonds as of the end of December each year.
JEI also reports the following indicators about the Eligible Green Projects as of the end of March each year.
・The number of Eligible Green Projects and type of certification achieved
・The total amount of the leasable floor space of Eligible Green Projects
・“Electricity consumption,” “water consumption” and “CO2 emissions,” which are quantitative indicators of Eligible Green Projects (limited to the scope in which JEI has energy control authority)

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JEI Latest Data

Number of Properties
31
Asset Size
273,587 million yen
as of July 2, 2018
Occupancy Rate
99.1%
as of October 31, 2018
copyright (c) 2009 Japan Excellent, Inc.