Green Bond|ESG|Nippon Prologis REIT, Inc.

Nippon Prologis REIT, Inc.

Green Bond

What is a Green Bond

As a part of the Prologis Group's ESG initiatives, NPR has been engaged in investing in and managing high-quality, energy-efficient modern logistics facilities, and it continues to proactively obtain green building certifications. Additionally, ESG-related social concerns from Japanese investors appear to be significantly rising. In response to this interest, NPR has issued investment corporate bonds in the form of green bonds. Green bonds are a type of bond instrument, the proceeds of which are used for green projects that have clear environmental impact. Green bonds are issued by corporations, investment funds and municipalities. The issuance of green bonds must adhere to the Green Bond Principles stipulated by the International Capital Market Association (ICMA). For detailed information about green bond principles, please refer to ICMA’s following website:
https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/

NPR Green Bond

From time to time, NPR may issue green bonds to raise capital for various corporate activities that would ultimately contribute a more sustainable and carbon-free society. Green bonds are issued according to the protocols described in Prologis' "Green Bond Framework." This Green Bond Framework follows the Green Bond Principles, which provides guidelines in four key areas.

Prologis Green Bond Framework

  1. Use of proceeds;
  2. Process for project evaluation and selection;
  3. Management of proceeds; and
  4. Reporting

Proceeds from the issuance of green bonds will be used for new or existing investments in or expenditure on properties that meet the eligibility criteria of sustainability building certificates. The proceeds may also be used for refurbishments to properties to significantly improve energy efficiency and/or water efficiency, or to make other environmentally beneficial improvements to a building, building subsystem or land, and investments in or expenditures on the acquisition, development, construction and/or installation of renewable energy production units as well as energy storage systems. Projects to which green bond proceeds are allocated are evaluated and selected by NPR's Green Bond Committee, which comprises members of NPR’s Sustainability Committee. NPR will report on its website, within a year of the issuance of applicable green bonds, the status of allocation to "the Eligible Green Projects".

The Eligible Green Projects

The Eligible Green Projects that meet the eligible criteria set forth in the Prologis Green Bond Framework are listed below.

As of February 5, 2020

Property Name Acquisition Price
(million yen)
CASBEE DBJ Green Building Certification BELS
Prologis Park Ichikawa 1 33,900 S(Note 1) five stars ★★★★
Prologis Park Zama 1 27,900 S(Note 1) five stars ★★★★★
Prologis Park Kawajima 25,600 A(Note 1)
Prologis Park Osaka 2 25,000 A(Note 2)
Prologis Park Maishima 3 13,500 B+(Note 2)
Prologis Park Kasugai 12,500 S(Note 1) ★★★★
Prologis Park Takatsuki 4,410 A(Note 2)
Prologis Park Zama 2 21,900 S(Note 1) five stars ★★★★
Prologis Park Narita 1-A&B 8,420 A(Note 1)
Prologis Park Narita 1-C 4,810 A(Note 1)
Prologis Park Amagasaki 1 17,600 A(Note 1) four stars
Prologis Park Amagasaki 2 19,200 A(Note 1) five stars
Prologis Park Narashino 4 20,000 A(Note 1)
Prologis Park Tokyo-Shinkiba 13,600 A(Note 1)
Prologis Park Yokohama-Tsurumi 13,800 A(Note 1)
Prologis Park Osaka 4 21,000 A(Note 2)
Prologis Park Kawajima 2 8,180 A
Prologis Park Ebina 8,250 A
Prologis Park Kawanishi 13,600 A
Prologis Park Amagasaki 3 9,090 A
Prologis Park Kobe 6,410 A
Prologis Park Kitamoto 12,600 A(Note 2)
Prologis Park Joso 7,120 A(Note 1) ★★★★★
Prologis Park Osaka 5 17,600 A(Note 1) ★★★★★
Prologis Park Narita 3 9,240 four stars
Prologis Park Koga 1 7,680 ★★★★
Prologis Park Kobe 2 13,700 A(Note 2) ★★★★★
Prologis Park Narashino 5 13,600 A(Note 1) ★★★★★
Prologis Park Ibaraki 38,300 S(Note 1) ★★★★★
Prologis Park Koga 2 3,930 ★★★★★
Prologis Park Ichikawa 3 17,000 A five stars ★★★★★
Prologis Park Narita 1-D 5,260 ★★★★
Prologis Park Yoshimi 21,300 A(Note 1) ★★★★★
Prologis Park Koga 3 5,440 ★★★★★
Prologis Park Tsukuba 1-A 12,900 A ★★★★★
Prologis Park Higashimatsuyama 12,600 A ★★★★★
Prologis Park Kyotonabe 35,800 S ★★★★★
Prologis Park Kobe 4 5,020 A(Note 2) ★★★★★
Prologis Park Chiba 1 31,000 ★★★★★
Prologis Park MFLP Kawagoe 14,800 A ★★★★★
Prologis Park Tsukuba 1-B 13,500 A ★★★★★
Total Amount of the Eligible Green Projects 627,060
Total Amount of the acquisition Price 700,620
The number of the Eligible Green Projects 41
The percentage of the Eligible Green Projects in our portfolio 89.5%
  • Certification has already expired as of February 5, 2020.
  • Not certified by a third-party but an assessment based on self-reporting.

The Allocation Reporting

The allocation of net proceeds to the Eligible Green Projects is reported below.

  • Total Green Bond Balance
    6,000million yen (fully allocated to the "Green Building")
Name 7th Unsecured Investment Corporation Bonds
Amount of Issuance 6,000 million yen
Date of Payment August 17, 2018
Redemption Date August 17, 2028
Interest Rate 0.660% per annum
Use of Proceeds The proceeds from the bond issuance will be allocated to the prepayment of a portion of the short-term loans (6,300 million yen) (the "Prepayment") borrowed on Aug. 8, 2018. Regarding the subject short-term loans, 6,300 million yen to be prepaid by the proceeds of the Green Bond is a refinancing of loans originally borrowed for the acquisitions of properties on Aug 1, 2017 (Prologis Park Narashino 5, Prologis Park Ibaraki and Prologis Park Koga 2), all of which are the Eligible Green Projects.
Date of Allocation August 20, 2018
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