1. What is green finance?

Green finance means bonds (green bonds) and borrowings (green loans) with restrictions on the use of proceeds for business activities that take the environment into consideration.
The Investment Corporation believes that employing proceeds from green finance for the acquisition of assets which satisfy certain eligibility criteria for environmental improvement effects (“Green Buildings”) and providing the Green Buildings as infrastructure assets to society will contribute to the environment and society.
Green finance is defined as a method of expanding funding vehicles of the Investment Corporation. It will grasp expected levels of funding vehicle ESG (Environment, Society & Governance) through dialogues with institutional investors who are interested in ESG in the course of funding and apply the details of the expected levels to its asset management.

2. Green finance framework

Evaluations of external institutions

The Investment Corporation has been assigned “Green 1 (F),” the highest grade in the JCR Green Finance Framework Evaluation with respect to eligibility for green finance framework by Japan Credit Rating Agency, Ltd. (“JCR”), a green finance assessment body.
For more details, please visit the JCR website.
https://www.jcr.co.jp/greenfinance/

Use of proceeds

Proceeds from green finance will be used to fund acquisitions of Green Buildings or repayments and redemptions of borrowings (including green loans) and investment corporate bonds (including green bonds) for such acquisitions.

Eligibility criteria

The Investment Corporation defines properties that have acquired, have updated or are scheduled to acquire or update any third-party assessment body certification described in (i) to (iii) below as Green Buildings.

Management of proceeds

After procurement through green finance, the Investment Corporation will use proceeds promptly or without delay to fund acquisitions of Green Buildings or repayments and redemptions of borrowings and investment corporate bonds for such acquisitions.

If Green Buildings for which proceeds are used are excluded from being subject to use of proceeds due to sale, etc., the total amount of balances of green finance will be managed to ensure that the amount does not exceed that of green eligible liabilities ^(Note).

Reporting