Fukuoka REIT Corporation

Fukuoka REIT Corporation

Last Update / Aug 21,2019

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    Green Finance

    - CONTENTS GUIDE

    01.Green Finance Framework

    Fukuoka REIT Corporation(here in after "FRC") has established the green finance framework in line with the “Green Bond Principles 2018” and “Green Bond Guidelines 2017 by Ministry of the Environment” set forth by the Ministry of the Environment to conduct green finance including green loans.

    (1)Use of funds procured through green finance

    The funds procured through green finance 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 finance 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

    (3)Maximum procurement amount in green finance

    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 finance.

    ■The idea of maximum procurement amount in green finance

    エングラフ

    (4)Reporting

    After the procurement through green financing, FRC will announce the total amount of Eligible Green Projects, Debt of Eligible Green Projects and the amount of procurement through green finance as of the end of each fiscal period (every February and August).
    In addition, FRC will announce the following indicators on the Eligible Green Projects as of the end of February every year.
    ・Number of properties, number of environmental certifications acquired and type of Eligible Green

    02.The funds procured through green finance

    The condition of the funds procured through green finance is as follows. (as of July 31, 2019)

    (1)The total amount of procurement in green finance 2,200 million yen

    Total amount 2,200 mm yen
    Commencement date July 31, 2019
    Termination date July 31, 2029
    Interest rate 0.521%(Note1)
    Summary No collateral / No guarantee

    (Note1)FRC has concluded a swap agreement to practically fi interest rate on debt.The indicated interest rate reflects the effect of swap agreement.

    (2)Debt of Eligible Green Projects (Maximum procurement amount in green finance) 54,964 million yen 

    Property name Acquisition Price
    (mm yen)
    DBJ Green Building Certification BELS Certification
    Canal City Hakata 32,000 ★★★★★ -
    Canal City Hakata・B 28,700 ★★★★★ -
    Park Place Oita 18,620 ★★★★ -
    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 ★★★★ ★★★★★
    Total 138,450 - -
    Total of Eligible Green Projects 138,450 mm yen
    LTV(Note 2) 39.7%
    Debt of Eligible Green Projects 54,964 mm yen

    (Note 2)LTV as of February 28, 2019

    03.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)

    PDFアイコン Results of Green Loan from JCR (linked to the report)
    Sustainability
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