1. Home
  2. ESG Initiatives
  3. Greenbond

Greenbond

What is a Green Bond

Green bonds are a type of bond instrument, the proceeds of which are used for green projects*. Green bonds are issued by corporations, investment funds and municipalities. The issuance of green bonds must adhere to the Green Bond Principles stipulated by the International Capital Market Association (ICMA).

For detailed information about green bond principles, please refer to following.

* Green project is a project that has an environmental improvement effect, and it is evaluated that the negative environmental effect (environmental load) is not excessive compared to the environmental improvement effect.

Green Bond Framework

Use of proceeds

LaSalle LOGIPORT REIT (“LLR”) will allocate the proceeds of the green bond to acquire existing or new assets that meet the Eligibility Criteria (Eligible Green Assets), or to refinance the existing loan/investment corporation bonds which have been allocated to Eligible Green Assets.

Eligibility Criteria

LLR shall apply one or more of the following criteria to allocate the proceeds to Eligible Projects.

A. Eligible Green Assets
Buildings that have achieved the following top three levels of third-party green building certification/recertification within 36 months prior to the payment date of green bonds or will achieve:
・B+, A or S Rank under CASBEE for Real Estate
・3, 4 or 5 Stars under DBJ Green Building Certification Program
・3, 4 or 5 Stars under BELS

B. Renovation Projects
Renovations with a primary purpose of achieving one of the following criteria and are completed within 36 months prior to the payment date of green bond or will be completed:
・Renovations with more than 10% reduction in CO2 emissions or energy consumption
・Renovations with more than 10% reduction in water consumption
・Newly achieve a green building certifications listed in above A. Eligible Green Assets or more than one level of star/rank improvement in the green building certifications

Process for project evaluation and selection

Selection of the projects that meet the eligibility criteria will be executed by LaSalle REIT Advisors K.K., LLR’s asset management company, President and CEO, and Investment Committee, based on the delegation of authority.

Management of Proceeds

LLR tabulates the Eligible Green Assets out of its portfolio and calculates the Debts of Eligible Green Assets by multiplying the calculable total book value of the Eligible Green Assets by its calculable book value LTV (Loan to Value / based on interest-bearing debt) ratio as of the end of the latest fiscal period prior to the date of each bond issuance. LLR will then monitor to ensure that the outstanding balance of the green bonds does not exceed the debts of Eligible Green Assets.

Reporting

Allocation reporting

LLR will disclose that the total amount of outstanding green bonds does not exceed the debts of Eligible Green Assets. Furthermore, LLR will annually report on the book value of all the Eligible Green Assets, the debts of Eligible Green Assets and the outstanding amount of the green bonds as of the end of February in each year.

Impact reporting

As long as there is an unredeemed balance to the relevant green bonds, LLR will annually disclose on its website a brief description of Eligible Green Assets, progress and levels of certifications and the following indicators:

  • • Electricity consumption
  • • Water consumption
  • • CO2 emissions

Green Bond Summary

As of February 16, 2021

Issuer Amount of issuance Coupon Issuance date Maturity date Notes
6th Unsecured Investment Corporation Bonds JPY 3,000 million 0.590% February 20, 2020 February 20, 2030 Unsecured,
non-guaranteed
7th Unsecured Investment Corporation Bonds JPY 2,000 million 0.760% February 16, 2021 February 15, 2036 Unsecured,
non-guaranteed

Allocation reporting

The allocation of net proceeds to the Eligible Green Projects is reported below:

Total Green Bond Balance JPY 3,000 million *Fully allocated to the “Eligible Projects“
Green bond unredeemed balance JPY 3,000 million
The debts of Eligible Green Assets
(the calculable total book value of the Eligible Green Assets × book value LTV)
JPY 127,708 million

Green Eligible Assets, debts of Eligible Green Assets

As of February 28,2021

Impact reporting

List of Eligible Green Assets

As of April 6, 2021

Property name Certification・Rank
CASBEE BELS
LOGIPORT Hashimoto Rank S ★★
LOGIPORT Sagamihara Rank S ★★★★
LOGIPORT Kitakashiwa Rank S
LOGIPORT Nagareyama B Rank S ★★
LOGIPORT Higashi Ogishima A Rank A ★★★★★ ZEB Ready 53%
LOGIPORT Higashi Ogishima B Rank A ★★★
LOGIPORT Higashi Ogishima C Rank A ★★★★★
LOGIPORT Kawagoe Rank A ★★★★★
LOGIPORT Sakai Minamijimacho Rank S ★★★★★ ZEB Ready 50%
LOGIPORT Kashiwa Shonan Rank S ★★★★★ ZEB Ready 56%
LOGIPORT Sayama Hidaka Rank S ★★★★★ ZEB Ready 63%
LOGIPORT Sakai Chikko Shinmachi Rank S
LOGIPORT Osaka Taisho Rank S ★★★★★ ZEB Ready 54%
LOGIPORT Kawasaki Bay Rank A
LOGIPORT Shinmoriya Rank A