Green Bond Fact SheetJapan Finance Organization for Municipalities

Date: 05/03/2020

Issue date: 12-02-2020 Maturity date: 12-02-2027 Tenor: 7Issuer NameJapan Finance
Organization forMunicipalities

Amount Issued

EUR 500 m/USD556m

Country of riskJapan

CBI Database

Included

Issuer Type1

Government-Backed
EntityBond TypeSr Unsecured

Green Bond Framework

Link to Framework

Second party opinion

Vigeo Eiris

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emissionvehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☒ Water distribution☒ Water treatment☒ Wastewater
treatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☒ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingJapan Finance Organization for Municipalities (JFM) Green Bond Working Group will conduct
a survey of its local government borrowers in respect of the environmental impact of theirsewerage projects which JFM finances. Projects with positive responses will form the‘Effective Portfolio’. JFM will earmark green bond funds towards such projects.
JFM intends to report annually on their website: amount of proceeds allocated to eachproject in the ‘Effective Portfolio’ and a breakdown of the ‘Effective Portfolio’ by project type.
JFM also commits to disclose some KPIs which will provide information on: projectdescriptions, total project costs, population of the covered area, water management capacity
and water quality impact (where relevant), absolute amount of sludge treated and disposedof (where relevant), newly constructed pipe length and/or total pipe length (where relevant),and other positive environmental impacts of new construction or update of seweragemanagement-related facilities, sewerage facilities or equipment and sewerage pipes.
Finally, JFM will publish case studies of some eligible projects as well as the refinancing rate
(in % of the total amount of proceeds).

Company information

JFM is a joint funding organisation, the objective of which is to provide Japanese local
governments with long-term funding at low interest rates.

Firsts, records andcertifications
Proceeds description

The net proceeds will be used to make loans to local municipalities to finance or refinance,
in whole or in part, existing or future sewerage projects of the local governments thatsatisfy the eligibility criteria.

Climate Bonds view

Climate Bonds welcomes green bonds such as the one issued by JFM as they allow
municipalities to obtain cheap loans to finance projects with positive environmental
impacts. We hope to see more funding organisations come to the market with similar
deals, especially to provide funding to entities which might not be able to raise debt in thedebt capital markets. Climate Bonds also supports JFM’s very good level of commitment interms of reporting – this is crucial for increasing market transparency.
J.P. Morgan Securities plc, Barclays Bank PLC, Merrill Lynch International, Mizuho
International plc

Underwriters
Deal comments
Credit Rating

A+ (S&P)
A1 (Moody’s)Pricing summary•

Coupon: 0.050%

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign