Green Bond Fact Sheet

ORIX JREIT

Date: 28/07/2019

Issue date: 18-07-2019 Maturity date: 18-07-2024 Tenor: 5Issuer Name

ORIX JREIT Inc.

Amount Issued

JPY7bn (USD65m)

Country of riskJapan

CBI Database

Included

Issuer Type1

Financial corporate

Bond Type

Senior unsecured

Green Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

Green 1 (JCR)☐ 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

Since the proceeds will be allocated in full at issuance towards refinancing, no reporting on
the use of proceeds is expected. However, disclosure will be made by OJR in the event of amajor change in circumstances, such as the occurrence of unallocated proceeds due to thesale of the two properties refinanced with the bonds.
In terms of environmental impacts, OJR will disclose the status and rating of building
certifications of each asset, as well as energy and water consumption and CO2 emissions, aslong as the green bond exists (i.e. until maturity).
ORIX JREIT Inc. (OJR) is Japan's first diversified Real Estate Investment Trust (J-REIT),
established in 2001 and listed on the Tokyo Stock Exchange (Real Estate Investment TrustSecurities Market) in 2002. OJR invests in logistics facilities, commercial facilities, housing,and hotels, with office buildings in the Tokyo metropolitan area at its core.

Firsts, records andcertifications
Proceeds description

The proceeds will be allocated for refinancing the acquisition of properties that meet theeligibility criteria established by OJR in its Green Finance Framework, i.e. properties thathave obtained or are expected to obtain either three stars or more in the DBJ Green
Building Certification, B+ or higher in CASBEE Certification, three stars or more in BELS
Certification, or LEED Silver or higher.
Specifically, the bond will refinance the acquisition of an office building (Lunar Sendai, inMiyagi) and a logistics facility (Toda Logistics Centre, in Saitama), with a total acquisitionprice of JPY18.1bn. Lunar Sendai has the highest BELS certification ranking of five stars,
while Toda Logistics Centre has four stars. BELS certification assesses the degree ofachievement of Energy Efficiency Standards.
In February 2015, Lunar Sendai renewed its air-conditioning equipment and changed theelectricity used in its exclusive and common use areas to LED, thereby reducing energy
consumption. Toda Logistics Centre also works to conserve energy by adopting highefficiency lighting equipment.

Climate Bonds view

While OJR’s bond may lack “additionality”, as it refinances the acquisition and energy
improvement of two properties, we are pleased to see the issuer doing so via a green label,as it should support further growth in the Japanese market. It may also support theexpansion of the country’s building certifications.
Japan’s green bond market has been expanding rapidly in the last 18 months; after morethan 30 bonds issued from the country in 2018, already 25 have been issued in 2019 (as of
the time of writing). Most of these have been issued by corporates, with a significant
portion financing buildings. We hope it becomes more diversified in terms of both types ofprojects and issuer types; even within financial corporates, it would be good to see moreissuance from large financial institutions (e.g. banks), which has been lacking so far.

Underwriters

Daiwa, Mitsubishi UFJ Morgan Stanley Securities, SMBC Nikko Securities

Deal comments
Credit Rating
Pricing summary
Investors summary

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