ESG Finance

Overview of the Sustainability Framework

Use of Proceeds from Sustainability Finance

The net proceeds from sustainability finance will be used for the acquisition of assets in the Eligible Green Projects as provided for in Eligible Sustainability Projects below, refinancing of loans required for the acquisition of assets in the Eligible Sustainability Projects, and for the redemption of the investment corporation bonds that have already been issued (including sustainability bonds/green bonds) for the acquisition of assets in the Eligible Sustainability Projects.

Eligible Sustainability Projects

Eligible Sustainability Projects are assets or projects that satisfy either of the Eligible Green Project Criteria and the Eligible Social Project Criteria shown below.

Eligible Green Project Criteria

Green buildings

New, existing or renovated buildings that have obtained at least one of the following certifications;

i) DBJ Green Building Certification (Japan): five, four or three stars
ii) CASBEE (Japan): S, A or B+
iii) BELS (Japan): five, four, or three
iv) LEED (U.S.): Platinum, Gold or Silver

Contribution to the sustainable growth of local communities

New, existing, or refurbished buildings that contribute to either of items a through d shown below:

a. Safety of local residents in times of disaster
b. Development of the local living environment
c. Revitalization of the local community
d. Provision of parenting support

Management of Proceeds

The upper limit of green finance (limit of the "Debts of Eligible Sustainability Projects") shall be the amount calculated by multiplying the total acquisition cost of the Eligible Sustainability Projects by the ratio of actual interest-bearing debt to total assets as of the end of the latest fiscal period that can be calculated on the payment date or loan date of each investment corporation bond, or as of the end of every February.

サステナビリティバランスシート

  1. Eligible Sustainability Projects that also fall under the definition of Eligible Green Projects under GLP J-REIT’s Green Finance Framework are included both in the total value of Eligible Sustainability Projects and in that of Eligible Green Projects. Any amount of funding provided for those projects in the form of sustainability finance or green finance is included both in the outstanding balance of sustainability finance and in that of green finance. The amount included in the total value and the outstanding balance overlaps between the two forms of finance.

Sustainability Bond Issuance

GLP J-REIT 15th Unsecured Bonds (Special pari passu conditions among specified investment corporation bonds) (Sustainability Bonds)

Total issue amount 5,000 million yen
Issuance date September 25, 2020
Redemption date September 25, 2030
Interest rate 0.510%
Others Unsecured, not guaranteed

GLP J-REIT 16th Unsecured Bonds (Special pari passu conditions among specified investment corporation bonds) (Sustainability Bonds)

Total issue amount 3,500 million yen
Issuance date December 23, 2020
Redemption date December 21, 2035
Interest rate 0.750%
Others Unsecured, not guaranteed

GLP J-REIT 17th Unsecured Bonds (Special pari passu conditions among specified investment corporation bonds) (Sustainability Bonds)

Total issue amount 5,000 million yen
Issuance date March 23, 2021
Redemption date March 22, 2041
Interest rate 0.970%
Others Unsecured, not guaranteed

Reporting

GLP J-REIT will continue to disclose the following indicators as of the end of every February so long as it has a sustainability bond finance balance.

Total amount of allocated proceeds/ Amount of proceeds not yet allocated

GLP J-REIT 15th Unsecured Bonds (Sustainability Bonds)

Total amount of allocated proceeds 4,967 million yen
Amount of proceeds not yet allocated 0 yen

GLP J-REIT 16th Unsecured Bonds (Sustainability Bonds)

Total amount of allocated proceeds 3,474 million yen
Amount of proceeds not yet allocated 0 yen

GLP J-REIT 17th Unsecured Bonds (Sustainability Bonds)

Total amount of allocated proceeds 4,961 million yen
Amount of proceeds not yet allocated 0 yen

Reporting on Social Benefits

(1) Output indicators

Number of properties that are Eligible Green Projects 12

(2) Outcome indicators

Emergency shelter for people affected by disaster 13 properties 8,557 people
Standby station for Disaster Relief Teams and Emergency Fire Response Teams in the event of a disaster 13 properties
Backup power supply (72 hours) 8 properties
Stockpile volume of fuel (72 hours) 8 properties
Groundwater facility* GLP AtsugiⅡ
GGLP SojaⅠ
  1. Some properties have groundwater facilities available for use during a water outage.

(3) Impact

Harmonious relationship with the local community by contributing to the safety and security of the community

Evaluation by an External Organization

With regard to the eligibility of the sustainability finance framework, GLP J-REIT has obtained the evaluation of “SU 1 (F)", the highest JCR Green Bond Evaluation from Japan Credit Rating Agency, Ltd. (JCR), which is a green bond evaluation organization.

GLP J-REIT 15th Unsecured Bonds (Sustainability Bonds)

GLP J-REIT 16th Unsecured Bonds (Sustainability Bonds)

GLP J-REIT 17th Unsecured Bonds (Sustainability Bonds)

Sustainability finance framework

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