Translation of Japanese Original
January 9, 2019
To All Concerned Parties
REIT Issuer:
Kenedix Office Investment Corporation
Jiro Takeda, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Masahiko Tajima, President & CEOInquiries:
Hiroaki Momoi
Head of Planning Division
Office REIT Department
TEL: +81-3-5157-6010

Notice Concerning Establishment of Green Bond Framework for Green Bonds Issuance, etc.

Kenedix Office Investment Corporation (“the Investment Corporation”) has announced that the Investment
Corporation has established, in preparation for issuance of green bonds (Note 1) (unsecured investment
corporation bonds) (“the Green Bonds”) for the first time, “Green Bond Framework,” which specifies a
basic policy on green bonds (“the Framework”), and that the Framework has obtained a second-party
opinion from Sustainalytics, a third-party ESG and corporate governance research agency, and the Green
Bonds has obtained a preliminary evaluation of “Green 1”, the highest evaluation from Japan Credit
Rating Agency, Ltd. (“JCR”) as of today.

1.

Purposes and Backgrounds of Efforts toward Issuance of Green Bonds
The Investment Corporation recognizes the importance of consideration for Environment, Social andGovernance (ESG) issues in real estate investment management, and regards initiatives for improvement insustainability to fulfill our corporate social responsibility and contribute to sustainable society as ourimportant business challenges.
As part of our environment-conscious initiatives, we have continued efforts to promote
environment-friendliness and energy conservation, improve energy utilization and achieve sustainability atproperties in our portfolio, by participating in GRESB (Global Real Estate Sustainability Benchmark) RealEstate Assessment, in which the Investment Corporation received a “Green Star” rating for the sevenconsecutive years, and proactively acquiring environmental certification and assessment from external
certification/evaluation systems, including DBJ Green Building Certification, Certification for CASBEE forReal Estate and BELS Certification (Note 2).
The Investment Corporation has established the Green Bond Framework for issuance of green bonds, thepromotion of which is supported by Ministry of the Environment, since we consider that such issuanceenable us to be more committed to our efforts to improve sustainability and also to make further contribution
to development of the domestic green bond market, by offering opportunities to the universe of investors
who take active stance towards ESG investment.

2.

Eligibility of the Green Bonds and the Framework
The second-party opinion which was given from Sustainalytics, a third-party ESG and corporate governanceresearch agency, stated that “The Framework conforms to the Green Bond Principles 2018 and the Green1

Bond Guidelines, 2017” (Note 3). Also, the Green Bonds have obtained a preliminary evaluation of “Green1” from JCR, the highest evaluation in its “JCR Green Bond Evaluation.”
For details of the opinion and evaluation, please refer to the websites below:*Second-party opinion given by Sustainalytics:
https://www.sustainalytics.com/wp-content/uploads/2019/01/Kenedix-Office-Investment-Corporation-Green-Bond-Framework-Overview-and-Second-Party-Opinion_Final.pdf*JCR Green Bond Evaluation:
https://www.jcr.co.jp/download/7b88dc5687e2c92bb332beba1b4abcd1b4e06e7ed0a7e25802/18d0908_f.pdf

In addition, with regard to the Investment Corporation Bonds’ obtainment of third-party evaluations,issuance supporters Sustainalytics and JCR have received a notice from Green Finance Organisation Japan,
General Incorporate Association, regarding the fact that subsidies would be granted to them under theMinistry of the Environment’s framework of FY2018 Financial Support Programme for Green Bond
Issuance (Note 4).

Note 1: Green bonds are bonds that are issued to raise funds for domestic and overseas green projects: to be specific, (i)those the proceeds of which are allocated exclusively to green projects, (ii) those the proceeds of which are tracked
and managed in a reliable manner, and (iii) the transparency of such proceeds is ensured by reporting after theissuance of the bonds.
Note 2: For details of certification and assessment obtained from external systems, please refer to the Investment
Corporation’s website, “Initiatives for Sustainability” as below:
https://www.kdo-reit.com/en/feature/sustainability.html
Note 3: Green Bond Principles 2018 is the 2018 version of the internationally-recognized guidelines for issuance of green
bonds, stipulated by Green Bond Principles Executive Committee, a private organization administered by theInternational Capital Market Association (ICMA). “Green Bond Guidelines, 2017” is guidelines established andannounced by Ministry of the Environment in March 2017 in consideration of consistency with Green Bond
Principles, provide issuers, investors and other market participants with illustrative examples of specificapproaches and interpretations which are tailored to Japan’s bond market to aid with decision-making regarding
green bonds, for the purpose of further increase in issuance of green bonds in the domestic market.
Note 4: For FY2018 Financial Support Programme for Green Bond Issuance, please refer to the website “FinancialSupport Programme for Green Bond Issuance (Subsidy Project)” as below:
http://greenbondplatform.env.go.jp/en/support/subsidy.html

Issuance and terms of issuance of the Green Bonds, etc. are not decided as of today, and will be announced upondetermination.

The Investment Corporation’s website: https://www.kdo-reit.com/en/
This notice is the English translation of the Japanese announcement on our website released on January 9, 2019. However, noassurance or warranties are given for the completeness or accuracy of this English translation.

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