IIF has established the Social Finance Framework to implement social financing including issuing social bond in accordance with Social Bond Principles 2021. For the details, please refer to the following.
ICMA Social Bond Principles
IIF has received “Social 1 (F)” (the highest for JCR Social Finance Framework Evaluation) rating from Japan Credit Rating Agency, Ltd. (JCR) for the Social Finance Framework.
Social Finance Framework Evaluation (Japanese language only)
Projects to use proceeds are submitted to the Sustainability Committee after Portfolio Management & Investor Relations Department Industrial Division of the asset manager considers their eligibilities to meet the Eligible Social Criteria, and are evaluated and selected by the Sustainability Committee based on the Eligible Social Criteria and the “Responsible Property Investment Policy”.
| Facilities for development of medical technology and treatment such as medicine, pharmaceuticals, and drug discovery, etc. |
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| Facilities for job creation and development of regional economies through industrial promotion, etc. |
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| Facilities for maintenance and improvement of social life networks |
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| Facilities for maintenance and improvement of public lifelines |
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| Facilities contributing to development of disaster prevention technologies, maintenance of redundancies and maintenance of logistics networks for daily necessities in the event of disasters, and facilities for temporary evacuation, etc. |
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Proceeds from social financing including social bond based on the Social Finance Framework are allocated towards acquisition funds to purchase Eligible Social Projects, repayment of debts and redemption of investment corporation bonds (includes refinancing of these debts and investment corporation bonds) related to acquire Eligible Social Projects.
The amount of Eligible Social Projects in our portfolio is 111.0 billion yen in total as of January 31, 2025 (based on book value), comprised by 18 properties. The maximum outstanding amount of social financing is “Debts of Eligible Social Projects”, which is 56.4 billion yen, calculated by multiplying the total book value of Eligible Social Projects by IIF’s LTV ratio (50.9% as of January 31, 2025).
The following 18 properties are Eligible Social Projects as of the end of January 2025.
| Property | The Eligible Social Criteria |
|---|---|
| IIF Saitama Logistics Center |
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| IIF Kawaguchi Logistics Center |
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| IIF Kashiwa Logistics Center |
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| IIF Hiroshima Logistics Center |
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| IIF Kazo Logistics Center |
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| IIF Koriyama Logistics Center |
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| IIF Kobe Nishi Logistics Center (Land with leasehold interest) |
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| IIF Shonan Logistics Center |
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| IIF Totsuka Technology Center (Land with leasehold interest) |
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| IIF Kawasaki Science Center |
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| IIF Shin-Kawasaki R&D Center |
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| IIF Ichikawa Food Processing Center |
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| IIF Gifu Kakamigahara Manufacturing Center (Land with leasehold interest) |
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| IIF Shonan Health Innovation Park |
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| IIF Ota Manufacturing Center |
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| IIF Kobe District Heating and Cooling Center |
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| IIF Shinagawa Data Center |
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| IIF Osaka Toyonaka Data Center |
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While social financing including social bonds remain outstanding, IIF reports annually the total amount of Eligible Social Projects, Debts of Eligible Social Projects and the outstanding amount of social financing as of the end of January of each year, as well as the following KPI on Impact Reporting on the IIF website or in ESG reports published by the asset manager.
| Output indicators |
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| Outcome indicators |
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| (1) Facilities for the development of medical technology treatment such as medicine, pharmaceuticals, and drug discovery, etc. | ||||
|---|---|---|---|---|
| Trends in social security benefits | Trends in the number of researchers and R&D expenditures in the pharmaceutical manufacturing industry | Trends in the number of particular medical expenses (designated intractable disease) recipients | ||
| Social security benefits for medical care (Note 1) (100 million yen) |
Number of researcher (Note 2) (people) |
R&D expenditures (Note 3) (million yen) |
Number of particular medical expenses recipients (Note 4) (people) |
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| 2017 | 394,230 | 22,121 | 1,629,737 | 892,445 |
| 2018 | 397,480 | 23,014 | 1,605,117 | 912,714 |
| 2019 | 407,226 | 22,437 | 1,793,831 | 946,110 |
| 2020 | 427,193 | 20,928 | 2,063,749 | 1,033,770 |
| 2021 | 474,205 | 21,760 | 2,387,417 | 1,021,606 |
| 2022 | 487,511 | 21,260 | 2,769,424 | 1,048,680 |
| 2023 | -(Note 5) | 21,759 | 2,520,831 (prospect) |
1,086,579 |
| (2) Facilities for job creation and development of reginal economies through industrial promotion, etc. | |||
|---|---|---|---|
| Number of business establishments, amount of shipments of manufactured goods, and number of employees in areas where facilities are located (Note 1) | |||
| Fujisawa City, Kanagawa - the location of “IIF Shonan Health Innovation Park” | |||
| Number of offices (4 people or more) |
Amount of shipments of manufactured goods (million yen) |
Number of employees (people) |
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| 2017 | 297 | 1,427,612 | 23,595 |
| 2018 | 293 | 1,473,762 | 23,473 |
| 2019 | 288 | 1,505,603 | 23,745 |
| 2020 | 282 | 1,476,506 | 24,048 |
| 2021 | 271 | 1,393,309 | 23,569 |
| 2022 | 370 | 1,622,198 | 24,186 |
| 2023 | 371 | 1,783,071 | 24,435 |
| Kawasaki City, Kanagawa – the location of “IIF Kawasaki Science Center” | |||
|---|---|---|---|
| Number of offices (4 people or more) |
Amount of shipments of manufactured goods (million yen) |
Number of employees (people) |
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| 2017 | 1,184 | 3,593,787 | 47,240 |
| 2018 | 1,135 | 4,092,915 | 46,734 |
| 2019 | 1,089 | 4,201,226 | 46,236 |
| 2020 | 1,070 | 4,082,796 | 47,621 |
| 2021 | 1,032 | 3,399,873 | 47,466 |
| 2022 | 1,507 | 3,957,118 | 49,831 |
| 2023 | 1,495 | 4,134,305 | 50,062 |
| Kobe City, Hyogo – the location of “IIF Kobe Nishi Logistics Center (Land with leasehold interest)” | |||
|---|---|---|---|
| Number of offices (4 people or more) |
Amount of shipments of manufactured goods (million yen) |
Number of employees (people) |
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| 2017 | 1,522 | 3,213,485 | 68,380 |
| 2018 | 1,491 | 3,255,637 | 68,952 |
| 2019 | 1,433 | 3,439,841 | 68,014 |
| 2020 | 1,394 | 3,421,055 | 67,951 |
| 2021 | 1,329 | 3,409,011 | 67,625 |
| 2022 | 1,694 | 3,420,877 | 67,381 |
| 2023 | 1,699 | 3,839,108 | 68,743 |
| Ota Ku, Tokyo – the location of “IIF Ota Manufacturing Center (Land with leasehold interest)” | |||
|---|---|---|---|
| Number of offices (4 people or more) |
Amount of shipments of manufactured goods (million yen) |
Number of employees (people) |
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| 2017 | 1,254 | 401,905 | 19,752 |
| 2018 | 1,207 | 404,303 | 19,736 |
| 2019 | 1,151 | 421,256 | 18,982 |
| 2020 | 1,162 | 442,404 | 19,288 |
| 2021 | 1,261 | 434,462 | 19,628 |
| 2022 | 2,102 | 492,073 | 22,593 |
| 2023 | 2,100 | 563,092 | 22,635 |
| (3) Facilities for maintenance and improvement of social life networks | |||
|---|---|---|---|
| Trends of the diffusion index (D.I.) for employment conditions | Trends in IT investment | Trends in food loss and waste | |
| D.I. for employment conditions (Note 1) (”Shortage” minus “Excess”, %, points) |
IT investment (Note 2) (billion yen) |
Estimated amount of food loss and waste (Note 3) (tons) |
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| 2017 | 38 | 14,169 | 643 |
| 2018 | 43 | 13,930 | 612 |
| 2019 | 37 | 14,289 | 600 |
| 2020 | 25 | 15,221 | 570 |
| 2021 | 33 | 15,523 | 522 |
| 2022 | 44 | 15,829 | 523 |
| 2023 | 46 | -(Note 4) | 472 |
| (4) Facilities for maintenance and improvement of public lifelines | |||
|---|---|---|---|
| Trends in energy consumption of gas, electric power, etc. | Trends in the number of traffic accidents | Population of the municipality in which the facility is located | |
| Energy consumption (Note 1) (PJ) |
Number of traffic accidents (Note 2) | Population of Kobe City, Hyogo - the location of “IIF Kobe District Heating and Cooling Center” (Note 3) (Number of people) |
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| 2017 | 3,797 | 472,165 | 1,532,391 |
| 2018 | 3,895 | 430,601 | 1,527,390 |
| 2019 | 3,778 | 381,237 | 1,522,964 |
| 2020 | 3,660 | 309,178 | 1,524,335 |
| 2021 | 3,990 | 305,196 | 1,515,907 |
| 2022 | 4,032 | 301,193 | 1,509,397 |
| 2023 | - (Note 4) | 307,930 | 1,498,825 |
| (5) Facilities contributing to development of disaster prevention technologies for disasters, maintenance of redundancies and maintenance of logistics networks for daily necessities in the event of disasters, and facilities for temporary evacuation, etc. | |
|---|---|
| Trends in the amount of damage from nature disasters | |
| Damage amount due to nature disasters (Note 1) (million yen) |
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| 2017 | 599,421 |
| 2018 | 1,171,859 |
| 2019 | 1,241,737 |
| 2020 | 708,067 |
| 2021 | 414,480 |
| 2022 | 504,379 |
| 2023 | 495,929 |
| Contents of cooperation with local governments and private companies, outline of disaster prevention agreements, and the number of actual use of disaster prevention site | As of March 31, 2025, IIF Mitaka Card Center has an agreement with the Tokyo Metropolitan Government to use emergency disaster wells. |
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| Outline of the material supply agreement in the event of a disaster | As of March 31, 2025, the Investment Corporation or the Asset Management Company has concluded no disaster supply agreement with local governments or private companies. |
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| Impact (Qualitative Targets) |
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| To contribute to the establishment and development of a stable social infrastructure by promoting industrial promotion and R&D activities as a practice under the philosophy “Invests in infrastructure and industrial properties that and the source of the Japanese economy, and support Japanese industry from a real estate grand point.” |
As part of initiatives to resolve social issues, IIF has issued the first social bonds for IIF in September 2021. IIF promotes further ESG initiatives and expands financing methods by expanding investor base who are proactive in ESG investment by implementation of social financing through the Social Bond issuance.
Allocation of social financing of IIF is as follows, as of March 31, 2025
This table can be scrolled sideways.
| Name | Total issuance (million yen) |
Amount of funds raised (net proceeds) (million yen) |
Interest rate | Payment date | Redemption date | Use of the proceeds | Total amount allocated (million yen) |
Press release |
|---|---|---|---|---|---|---|---|---|
| Industrial & Infrastructure Fund Investment Corporation The 5th Unsecured Investment Corporation Bonds (Social Bond) (Alias : The 1st IIF Social Bonds) |
3,000 | 2,977 | 0.390% per annum | September 7, 2021 | September 5, 2031 | The proceeds are allocated to partial early repayment of borrowings to acquire IIF Shonan Health Innovation Park (40% co-ownership interest), which is the Eligible Social Projects, on September 10, 2021. | 2,977 | “Notice Concerning Issuance of Investment Corporation Bonds (Social Bonds) and Early Repayment of Borrowings” dated August 27, 2021. |
| Industrial & Infrastructure Fund Investment Corporation The 6th Unsecured Investment Corporation Bonds (Social Bond) (Alias : The 2nd IIF Social Bonds) |
2,000 | 1,982 | 0.680% per annum | September 7, 2021 | September 5, 2036 | The proceeds are allocated to partial early repayment of borrowings to acquire IIF Shonan Health Innovation Park (40% co-ownership interest), which is the Eligible Social Projects, on September 10, 2021. | 1,982 | “Notice Concerning Issuance of Investment Corporation Bonds (Social Bonds) and Early Repayment of Borrowings” dated August 27, 2021. |
| Industrial & Infrastructure Fund Investment Corporation The 9th Unsecured Investment Corporation Bonds (Social bonds) (Alias : The 3rd IIF Social Bonds) |
2,500 | 2,480 | 0.959% per annum | Octorber 17, 2024 | Octorber 17, 2029 | The proceeds are allocated to partial early repayment of borrowings to acquire IIF Ota Manufacturing Center, which is the Eligible Social Projects, on October 31, 2024. | 2,480 | "Notice Concerning Issuance of Investment Corporation Bonds (Social Bonds) and Early Repayment of Borrowing" dated October 10, 2024. |
Social Bonds refer to bonds that are issued by business companies, funds, local governments, and other entities in order to procure funds for social projects. Typically, the bonds are issued according to the Social Bond Principles laid down by the International Capital Market Association (ICMA). For the details, please refer to the following.
ICMA Social Bond Principles
IIF raised 1.5 billion yen through its first social loan under the Social Finance Framework established by IIF to be applied to the acquisition of IIF Ota Manufacturing Center, which is an Eligible Social Project, and related expenses. We will continuously promote sustainability-conscious asset management and work to strengthen our funding base through funding by implementation of social financing.
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 | 0.82800% | May 15, 2023 | May 15, 2031 | Appropriated for the acquisition price of IIF Ota Manufacturing Center, which is the Eligible Social Project, on May 15, 2023. | 1,000 | “Notice Concerning New Debt Financing (Social Loan)” dated May 10, 2023. |
| Sumitomo Mitsui Banking Corporation | 500*1 | Base interest rate* +0.165% (*JBA 1-month Japanese yen TIBOR) |
May 15, 2024 | May 15, 2025 | Appropriated for the acquisition price of IIF Ota Manufacturing Center, which is the Eligible Social Project, on May 15, 2024. | 500 | "Notice Concerning Debt Financing (Social Loan) (Refinancing)" dated May 8, 2024. "Notice Concerning Issuance of Investment Corporation Bonds (Social Bonds) and Early Repayment of Borrowing" dated October 10, 2024. |