Environmental

Green Finance Framework

Green Finance Framework

Regarding the eligibility of IIF’s Green Finance Framework, IIF has received from the Green Finance evaluation agency, Japan Credit Rating Agency, Ltd. (JCR), the Green 1 (F) grade, which is the highest evaluation grade of the JCR Green Finance Framework Evaluation.
For further details, please see the JCR website (Japanese language only):

1. Use of proceeds

Proceeds procured through Green Finance are used as funds for (1) properties that satisfy eligible criteria and (2) renovation works that satisfy eligible criteria, or the repayment of borrowings or the redemption of issued investment corporation bonds required for such properties or works.

Eligible criteria

(1) Eligible green projects
Properties that satisfy eligible criteria (Eligible Green Projects) are properties that have received and/or are expected to receive (including receiving again) any of the following green certifications within 36 months of the payment date or the effective date of the relevant procured funds.
In addition, the same criteria must be satisfied at the time of reporting at the end of January of each year.

  • Buildings that have received 3, 4, or 5 stars under the DBJ Green Building Certification Program.
  • Buildings that have received B+, A, or S rank under the CASBEE Certification Rank (including building certification, real estate certification, and local government versions of those certifications)(In local government versions, only those within 3 years from the date of completion of construction).
  • Buildings that have received 3, 4, or 5 stars under the BELS certification (2016 criteria).
  • Buildings excluding residence that have received 4, 5, or 6 stars under the BELS certification (2024 criteria).
  • Residence with renewable energy facilities that have received 3,4, 5, or 6 stars under the BELS certification (2024 criteria)
  • Residence without renewable energy facilities that have received 3 or 4 stars under the BELS certification (2024 criteria)
  • Buildings that have received Silver, Gold, or Platinum rank under the LEED certification (LEED BD+C: after v4).
  • Buildings that have received Outstanding, Excellent or Very Good rank under the BREEAM certification (Including BREEAM In-Use Certification).

(2) Renovation works
Renovation works that satisfy eligible criteria are works that satisfy any of the following criteria:

  • Renovation works intended to improve the number of stars or rank by one or more levels in buildings that have received, or are expected to receive green certification satisfies above(1).
  • Renovation works that can reduce energy consumption, CO2 emissions, or water consumption by 30% or more.
  • Renovation works related to the installation or acquisition of equipment related to renewable energy.

2. Project evaluation and selection

Eligible Green Projects and renovation works are evaluated and selected by the Sustainability Committee, which is chaired by the President & CEO of KJRM Holdings, who also serves as Chief Sustainability Officer (CSO). The evaluation and selection are conducted based on the “Sustainability Policy” and the eligible criteria.

3. Management of proceeds

The outstanding amount of the debts of Eligible Green Projects is calculated by multiplying the Eligible Green Projects extracted from the portfolio by the interest-bearing liabilities ratio.
IIF manages the proceeds to ensure that the total amount of proceeds procured by Green Bonds and Green Loans does not exceed the debts of Eligible Green Projects.

The Eligible Green Projects as of the end of January 2025 are as follows.
For properties that qualify as eligible social project as well as eligible green project, only one of the two will be considered as eligible projects when evaluating and selecting.

Management of proceeds

This table can be scrolled sideways.

Property Number Asset Category Property Name CASBEE for Building Certificates DBJ Green Building Certification BELS Certification
L-1 Logistics IIF Shinonome Logistics Center A
L-4 Logistics IIF Noda Logistics Center ★★★
L-7 Logistics IIF Koshigaya Logistics Center ★★★
L-8 Logistics IIF Nishinomiya Logistics Center S
(Expansion Building)
L-12 Logistics IIF Yokohama Tsuzuki Logistics Center A
L-18 Logistics IIF Higashiosaka Logistics Center A
L-20 Logistics IIF Misato Logistics Center S
L-21 Logistics IIF Iruma Logistics Center A
L-22 Logistics IIF Tosu Logistics Center ★★★
L-28 Logistics IIF Kyotanabe Logistics Center S
L-34 Logistics IIF Fukuoka Hakozaki Logistics Center I A ★★★★★
L-35 Logistics IIF Fukuoka Hakozaki Logistics Center II S
(Existing Building)
L-36 Logistics IIF Itabashi Logistics Center ★★★★
L-37 Logistics IIF Sendai Taiwa Logistics Center B+ ★★★★★
L-46 Logistics IIF Hyogo Tatsuno Logistics Center ★★★★★
L-57 Logistics IIF Kitakyusyu Logistics Center III A
L-62 Logistics IIF Tsuchiura Logistics Center ★★★★★★
L-65 Logistics IIF Hadano Logistics Center ★★★★★
L-66 Logistics IIF Sapporo Kitahiroshima Logistics Center A
L-68 Logistics IIF Kitakyusyu Logistics Center II A
F-15 Manufacturing and R&D IIF Atsugi Manufacturing Center ★★★★
  • *Environmental certifications obtained after February 1, 2022

4. Report on allocation

This table can be scrolled sideways.

Lender Amount
(million yen)		 Interest Rate Borrowing Date Maturity Date Use of the proceeds Total amount allocated
(million yen)		 Press release
Development Bank of Japan Inc. 1,000 1.33600% February 5, 2025 January 30, 2032 Repayment of the borrowing relating to the acquisition of IIF Higashi-Osaka Logistics Center as the Eligible Green Projects 1,000 Notice Concerning Debt Financing (Green Loan) (Refinancing)
The Norinchukin Bank 1,000 1.57300% March 17, 2025 February 28, 2033 Repayment of the borrowing relating to the acquisition of IIF Fukuoka Hakozaki Logistics Center I, IIF Fukuoka Hakozaki Logistics Center II, IIF Itabashi Logistics Center and IIF Sendai Taiwa Logistics Center as the Eligible Green Projects 1,000 Notice Concerning Debt Financing (Green Loan, etc.) (Refinancing)

5. Impact Report

IIF will publish the following indicators on its website once a year, as of the end of January of each year, for as long as Green Bonds or Green Loans remain outstanding.

As of the end of January 2025

(1) Eligible green projects

  • Types of certification for properties owned, number of certifications, and rank of each certification
    Please refer to the eligible green projects listed in "3. Management of proceeds."
  • Quantitative indicators for properties owned
    • Electricity consumption
    • Water consumption
    • CO2 emissions
      For details, please click here.

(2) Renovation works

  • Energy consumption, CO2 emissions, or water consumption before and after renovation
    None
DFF Inc., Industrial & Infrastructure Fund Investment Corporation, Mitsubishi Corp. - UBS Realty Inc.