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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 August 31, 2023)

・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

■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 August 31, 2023)

・The total amount of procurement 9,300 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)
  • 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.

・Debt of Eligible Green Projects (Maximum procurement amount in green loan) 59,424 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
Total of Eligible Green Projects 140,135 mm yen
LTV 42.4%
Debt of Eligible Green Projects 59,424 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)

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