Green Bond Fact SheetJapan Hotel REIT

Date: 31/07/2019

Issue date: 31-07-2019 Maturity date: 31-07-2024 Tenor: 5Issuer NameJapan Hotel REIT

Amount Issued

JPY2bn/USD18.4m

Country of riskJapan

CBI Database

Included

Issuer Type1

Financial corporate

Bond TypeSr Unsecured

Green Bond Framework

Link to framework

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

Green 1

☐ 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 emission
vehicles☐ 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☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ 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
ReportingCompany information

Japan Hotel REIT will disclose both the status on the allocation of the funds (annually on aproject-by-project basis) as well as KPIs on the impact that the funded projects have on theenvironment (annually on a project-by-project basis as well as on a project portfolio basis).
This includes information on water and energy consumption as well as CO 2 emissions after
the renovation Oriental Hotel Fukuoka Hakata Station. For projects not specifically related tothis particular hotel the name of the property as well as the details of the renewal will bedisclosed.
Japan Hotel REIT is a real estate investment fund specialising in hotels. It is listed on theTokyo Stock Exchange and was founded in 2005. Currently, Japan Hotel REIT has 43 assets.
JHR participated in GRESB Real Estate Assessment in 2018 for the first time and acquired“Green Star,” the highest ranking.

Firsts, records andcertifications
Proceeds description

For the issued bonds the proceeds are used for the following projects which meet thecriteria that are laid out in the Green Bond framework (in this case falling energyefficiency):
1) Refinancing: The funds are used to repay loans borrowed for the renovation of Oriental
Hotel Fukuoka Hakata Station (formerly Hotel Centraza Hakata). This includes equipment inorder to reduce CO2 emissions for example air condition equipment and electric equipment
as well as other equipment that has a positive environmental impact such as improvementof water consumption.
2) Funds for construction for renovation of other hotels: This includes the cost ofequipment for the renewal of air conditioning and the like aiming at a 10% CO2 reduction ormore.

Climate Bonds view

It is great to see another Real Estate Investment Trust issuing a green bond coming fromJapan. Japan is leading the way with almost 50% of the green bond issuance in this space.
We hope this will encourage issuers from other countries in this field to follow.

Underwriters
Deal comments
Credit Rating

Green 1 (Japan Credit Rating Agency)

Pricing summary•Investors summary

Coupon: 0.400%

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