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Green Finance
01．Sustainability-Linked Loan
FRC procured through Sustainability-Linked Loan ("SLL") as a new initiative to procure funds using ESG evaluation.
Three sponsor banks of the asset manager of FRC, the Development Bank of Japan Inc., The Nishi-Nippon City Bank, Ltd. and The Bank of Fukuoka, Ltd. as the syndicate, with Development Bank of Japan, Inc. as the sustainability coordinator.
FRC has set "35% reduction in CO2 emissions (basic unit) compared with fiscal 2019 by fiscal 2030" as a Sustainability Performance Target (SPT) under the loan agreement and the achievement of the target will be linked to the conditions of the loan.
(1)Status of financing
The condition of the funds procured through SLL is as follows. (as of February 29, 2024)
・The total amount of procurement 4.9 billion yen
| Lender | Development Bank of Japan Inc., The Nishi-Nippon City Bank, Ltd., The Bank of Fukuoka, Ltd. |
|---|---|
| Amount | 4.9 billion yen |
| Borrowing date | 2022/8/31 |
| Repayment date | 2032/8/31 |
| Third-party opinions | Japan Credit Rating Agency, Ltd. |
(2)External Evaluation
The SLL agreement, we obtained third-party opinions from Japan Credit Rating Agency, Ltd.(JCR) on the compatibility with the SLL Principles and the Ministry of the Environment’s SLL Guidelines regarding the ambition and significance of the SPT.
02．Green Laon
(1)Use of funds procured through green loan
The funds procured through green loan will be allocated to the acquisition of assets defined in “2.” (the “Eligible Green Projects”), repayment of borrowings required in the acquisition of Eligible Green Projects or redemption of investment corporation bonds issued and outstanding.
(2)Eligible Green Projects
Eligible Green Projects are assets that have received or scheduled to receive one of the following certifications of third-party certification organizations as of the date of procurement in green loan or reporting among the specified assets owned by FRC.
(i) 3, 4 or 5 stars in DBJ Green Building Certification
(ii)B+, A or S rank in CASBEE Certification
(iii)3, 4 or 5 stars in BELS Evaluation
(4)Reporting
After the procurement through green loan, FRC will announce the following indicators as of the end of each fiscal period (every February and August).
- The total amount of Eligible Green Projects, Eligible Green Project liability and the amount of procurement through green finance
- Number of properties, number of environmental certifications acquired and type of Eligible Green Project
(3)Maximum procurement amount in green loan
The amount of debt (the “Debt of Eligible Green Projects”) calculated by multiplying the total acquisition price of Eligible Green Projects by LTV (debt / total assets) as of the end of the latest fiscal period is set as the maximum procurement amount in green loan.
■The idea of maximum procurement amount in green loan
(5)Status of financing
The condition of the funds procured through green loan is as follows. (as of February 29, 2024)
・The total amount of procurement 25,700 million yen
| Name | Total amount | Commencement date | Termination date | Interest rate | Summary |
|---|---|---|---|---|---|
| Green Loan1 | 2,200 mm yen | July 31, 2019 | July 31, 2029 | 0.52100%(Note1) | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan2 | 1,600 mm yen | June 30, 2022 | June 29, 2029 | 0.72625% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan3 | 900 mm yen | July 31, 2023 | July 31, 2028 | 0.50100% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan4 | 600 mm yen | July 31, 2023 | July 31, 2031 | 0.82900% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan5 | 2,000 mm yen | August 31, 2023 | August 31, 2029 | 0.83750% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan6 | 2,000 mm yen | August 31, 2023 | February 28, 2030 | 0.90689% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan7 | 2,000 mm yen | September 29, 2023 | September 30, 2030 | 0.91900% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan8 | 1,900 mm yen | September 29, 2023 | September 30, 2031 | 1.01500% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan9 | 1,000 mm yen | September 29, 2023 | September 30, 2033 | 1.18900% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan10 | 600 mm yen | September 29, 2023 | September 29, 2028 | 0.76700% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan11 | 600 mm yen | September 29, 2023 | September 29, 2028 | 0.76700% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan12 | 500 mm yen | September 29, 2023 | September 29, 2028 | 0.76700% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan13 | 300 mm yen | September 29, 2023 | September 29, 2028 | 0.76700% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan14 | 2,500 mm yen | October 31, 2023 | October 31, 2031 | 0.33091% | Unsecured/unguaranteed Lump-sum repayment Floating rate Green loan assessment: Green 1（Note 2） |
| Green Loan15 | 1,000 mm yen | October 31, 2023 | October 31, 2030 | 1.20250% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan16 | 1,000 mm yen | October 31, 2023 | October 31, 2030 | 1.20250% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan17 | 1,000 mm yen | October 31, 2023 | October 31, 2031 | 1.24900% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan18 | 1,000 mm yen | February 29, 2024 | February 28, 2031 | 0.88900% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan19 | 1,000 mm yen | February 29, 2024 | February 28, 2033 | 1.07000% | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
| Green Loan20 | 1,000 mm yen | February 29, 2024 | February 28, 2031 | 0.33091% | Unsecured/unguaranteed Lump-sum repayment Floating rate Green loan assessment: Green 1（Note 2） |
| Green Loan21 | 1,000 mm yen | February 29, 2024 | February 28, 2033 | 0.37091% | Unsecured/unguaranteed Lump-sum repayment Floating rate Green loan assessment: Green 1（Note 2） |
- FRC has concluded a swap agreement to practically fi interest rate on debt.The indicated interest rate reflects the effect of swap agreement.
- FRC has received the highest “Green 1” rating from Japan Credit Rating Agency, Ltd. for our adherence to the Green Loan Principles.
Green Bonds
| Name | Total amount | Commencement date | Termination date | Interest rate | Summary |
|---|---|---|---|---|---|
| Green Bond1 | 0 mm yen | July 31, 2019 | July 31, 2019 | 0.521%(Note1) | Unsecured/unguaranteed Lump-sum repayment Fixed interest rate Green loan assessment: Green 1（Note 2） |
・Debt of Eligible Green Projects (Maximum procurement amount in green loan) 74,400 million yen
| Property name | Acquisition Price （mm yen） |
DBJ Green Building Certification | BELS Certification | CASBEE |
|---|---|---|---|---|
| Canal City Hakata | 32,000 | ★★★★★ | - | - |
| Canal City Hakata・B | 21,060 | ★★★★★ | - | - |
| Park Place Oita | 19,610 | ★★★★ | - | - |
| Konoha Maｌｌ Hashimoto | 10,000 | ★★★★ | - | - |
| Canal City Business Center Building | 14,600 | ★★★ | - | - |
| Gofukumachi Business Center | 11,200 | ★★★ | - | - |
| Higashi Hie Business Center | 5,900 | ★★★ | ★★ | - |
| Higashi Hie Business Center Ⅱ | 4,230 | ★★★ | ★★★ | - |
| LOGICITY Minato Kashii | 8,150 | ★★★ | ★★★ | - |
| LOGICITY Hisayama | 5,050 | ★★★ | ★★★★★ | - |
| Tissage Hotel Naha | 2,835 | - | ★★★★★ | - |
| Sanix Hakata Building | 4,400 | - | - | A |
| Granfore Yakuin Minami | 1,100 | - | - | A |
| Hakata FD Business Center | 14,100 | ★★★ | - | - |
| Taihaku Street Business Center | 7,000 | - | - | S |
| Hakata Chikushi-Dori Center Building | 4,320 | - | - | S |
| Total of Eligible Green Projects | 165,555 mm yen |
|---|---|
| LTV | 44.9％ |
| Debt of Eligible Green Projects | 74,400 mm yen |
(6)External Evaluation
The Green Loan of Fukuoka REIT Corporation has received a comprehensive evaluation of “Green 1,” the highest rating regarding eligibility for “Green Loan Principles,” from Japan Credit Rating Agency, Ltd. (JCR)