Green Bond Fact SheetJapan Housing Finance Agency

Date: 22-Feb-2019

Issue date: 21-Jan-2019 Maturity date: 20-Jan-2039 Tenor: 20Issuer NameJapan Housing
Finance Agency

Amount Issued

JPY10bn (USD91m)

Country of riskJapan

CBI Database

Included

Issuer Type1

Government-backed
entityBond TypeGreen bondGreen Bond Framework

N/A

Second party opinion

N/A

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☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ 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
ReportingCompany information

JHF is a government-backed agency, which acquires mortgages from originatingbanks and refinances itself in the bond market by issuing RMBS securitisations orbonds.

Firsts, records andcertifications
Proceeds description

Its bond scheme was selected as a pilot project by the Ministry of the Environmentof Japan (MoEJ) under its Pilot Project for Green Bond Issuance. The alignment ofpilot projects to Japan’s Green Bond Guidelines 2017 is checked by MoEJ and its
contractors – in this case, E&E Solutions and JCR.
Eligible assets are limited to mortgages on newly constructed Flat 35S housing,which covers low-carbon houses with primary energy consumption level 4 orhigher or thermal insulation performance level 4, as well as houses with anapproved energy efficiency improvement plan, and each is asset is verified by aninspection agent, certified by JHF. The pool of mortgages their debut green bondrefinances were originated in autumn 2018.

Climate Bonds view

JHF is a government-backed agency, which acquires mortgages from originatingbanks and refinances itself in the bond market by issuing RMBS securitisations orbonds. Similar to Fannie Mae in the US, it plays a key role in financing residential
properties in Japan, and can leverage its position to promote investment in energy
efficient buildings.
Its Flat 35S is a fixed-rate mortgage product, which provides financial incentives forhigh-quality, energy-saving and earthquake-resilient housing. In addition to thegreen bond, JHF’s two recent RMBS deals (Series 140 and Series 141) include Flat
35S collateral, so we would hope to see more green issuance from JHF goingforward.
The energy consumption level and insulation performance level are graded from 1
to 5, where Level 5 is the best in terms of energy efficient performance and Level 1
is the worst. Level 4 corresponds to the current national energy efficiency
standards, and Level 5 is 10% better. Consequently, the housing financed with thegreen bond is among the most energy efficient in Japan, which is aligned with theClimate Bonds Taxonomy. However, we encourage all issuers to make informationon the assets financed by a green bond publicly available for market transparency.
Underwriters
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