Contents

Message fromthe President

Sustainabillity

FeatureEnvironment

SocialGovernanceGreen Finance

Policy, Concept, and System

Green Finance Framework

Signatories to the Paris Agreement agree to keep the global

Tokyo Tatemono has established the Green Financeaverage temperature rise below 2°
C compared to theFramework, which complies with the four requirements defined

pre-industrial era, requiring efforts to achieve a low-carbon

in the Green Bond Principles and Green Loan Principles (usesociety. The real estate industry as a whole and Tokyoof procured funds, project evaluation and selection process,Tatemono specifically must strive to reduce greenhouse gases

management of procured funds, and reporting).

(GHG) in real estate holdings and business activities.
【Use of Procured Funds】

The term green finance refers to bonds (Green Bonds)
and loans (Green Loans) used to procure funds for special

Funds will be allocated to acquisition/construction of green

use in environmental measures such as global warming

buildings that meet eligibility criteria, or for refinancing

countermeasures and renewable energy. As a general rule,these funds.

funding is secured in accordance with the Green Bond

Eligible properties are those that have already acquired orPrinciples and Green Loan Principles established by theare scheduled to be certified/recertified as one of the top two

International Capital Market Association, as well as theranks in any of the third-party certification bodies, listed in (1)Green Bond Guidelines established by the Japanese Ministryto (3) below.

of the Environment.

① 4 or 5 stars in the DBJ Green Building Certification

The Tokyo Tatemono Group Environmental Policy calls for② A or S rank in the CASBEE building assessment (newus to lead the community in the prevention of global warming.

buildings)

The group strives to develop real estate that is both superior③ 4 or 5 stars in the BELS Evaluation Certificationin environmental performance (e.g. using energy-savingequipment) and resistant to natural disasters, such as those【Project Evaluation and Selection Process】

caused by wind and flood damage. This falls under the scope

The Finance and Corporate Communications Departmentsof green finance.

select projects that meet the eligibility criteria. The finalWe raise funding through green finance with the aim to further

decision is made by the president and CEO or an officer instrengthen our sustainability efforts.

charge of the Finance Department.

→ See Policies and Systems for Environmental Initiatives, P.16
【Management of Procured Funds】
The Finance Department uses internal management systems
to track and manage the state of procured fund allocation. The
Finance Department's general manager or an officer in charge
monitors and manages results. Until the funding is allocated,
funds are managed as cash and cash equivalents.
【Reporting】◯ Reporting related to funds allocation
We report the allocation status of procured funds on ourwebsite once a year until all funds classified for allocation
reporting are fully allocated◯ Reporting on environmental improvement impact
The following items are disclosed on our corporate website
once a year.
During construction period: Progress of certification acquisition
procedures
After completion: List of effective environmental certifications,energy usage*, CO₂ emission levels*, water usage** Actual levels for all Tokyo Tatemono facilities whose data is covered by
the Act on the Rational Use of Energy, including green buildings that meetthe eligibility criteria

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Contents

Message fromthe PresidentSustainabillity

FeatureEnvironment

SocialGovernanceIndicators and Results
TOPICSIn March 2019, Tokyo Tatemono issued 50 billion yen in
publicly offered hybrid corporate bonds (Green Bonds) basedon the Green Finance Framework.

Awarded the ESG Finance Award Japan(Silver)

The green hybrid bonds issued by Tokyo Tatemono wereThese were the first green bonds to be publicly offered inawarded the Minister of the Environment Award (SilverJapan as corporate debt and the largest tranche of green

Award) in the bonds category of the Ministry of theEnvironment ESG Finance Award Japan.

bonds issued in Japan.

This award was created to evaluate and commend

All funds procured will be used for refinancing acquisition

investors and financial institutions who make outstanding

and construction capital related to Hareza Ikebukuro andcontributions to the environment and society by engaging

Nakano Central Park South, two green buildings that meet thein ESG finance, green projects, or similar initiatives.

eligibility criteria of the Green Finance Framework.

Recognition includes corporate initiatives that have apositive impact on corporate value and the environment
by incorporating key environment-related opportunities
and risks into management strategy for the purpose ofincreasing corporate value.
【Reasons for Presenting Tokyo TatemonoWith the ESG Finance Award Japan】
・Issued Japan's first hybrid bond for the highest level ofgreen buildings in Japan・Ensured high transparency by implementing measures inline with CBI (Climate Bonds Initiative) standards
・Acquired target assets of superior rankings in green
building certifications
・Large-scale financing on the order of 50 billion yen

Award Ceremony for the ESG Finance Award Japan
Hitoshi Nomura, Representative Director, President and CEO (L)Shinjiro Koizumi, Minister of the Environment (R)▶ Green Finance Overview

Name▶ Green Finance Reporting

2nd Series Deferred Interest and Callable
Unsecured Subordinated Bonds (GreenFundingAllocation StatusBonds)

Hareza Ikebukuro: 13,041 million yen
Nakano Central Park South: Fully allocated(as of December 2019)

Pricing Date

March 8, 2019

Certifications in progress: None

Issue Date

March 15, 2019

Deadline for Redemption

March 15, 2059

Certifications acquired:◦ Hareza Tower (Hareza Ikebukuro)
DBJ Green Building Certification: 5 stars
CASBEE - Buildings (New Construction):Class S
BELS Certification: 5 stars (ZEB Ready)◦ Nakano Central Park South:
DBJ Green Building Certification: 5 stars

Total Issuance Value

50 billion yen

Use of Procured Funds

Funding for acquisition/construction ofHareza Ikebukuro and refinancing thereof
Refinancing of Nakano Central Park Southacquisition and construction funds

Eligibility Evaluation

Environmental
Improvement
ImpactEnergy consumption/CO₂ emissions:→ Responding to Climate Change, P.28
Water usage:→ R educing Our Environmental Burden (WaterResources), P.25

Green 1 (JCR)** These bonds have been certified for eligibility as green bonds by the thirdparty Japan Credit Rating Agency's JCR Green Bond Evaluation program.
These bonds received the Green 1 evaluation, the highest rank attainable
in this program.

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