Green Bond Fact Sheet

Kenedix Office Investment Corporation

Date: 20-Feb-2019

Issue date: 15-Feb-2019 Maturity date: 15-Feb-2024 Tenor: 5Issuer Name

Kenedix Office
Investment
Corporation

Amount Issued

JPY2bn (USD18m)

Country of riskJapan

CBI Database

Included

Issuer Type1

Financial corporate

Bond Type

Senior unsecured

Green Bond Framework

N/A

Second party opinion

Sustainalytics

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 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
Reporting

The issuer has committed to reporting both proceeds allocation and impacts annually.
Impact metrics are listed in the issuer’s green bond framework.

Company information

Kenedix Office Investment Corporation is a Japanese real estate investment trust (J-REIT)
providing real estate asset investment and management services in Japan. KDO wasfounded in 2005 and has been listed on the Real Estate Investment Trust Market of theTokyo Stock Exchange since then. KDO focuses primarily on investments in mid-sized officebuildings in the Tokyo Metropolitan Area, and currently owns 96 real estate properties witha total acquisition price of around JPY 415 billion (around USD 3.6 billion) as of November
1, 2018. (source)Firsts, records andcertificationsFirst Japanese-REIT green bond issuer of 2019.

Proceeds description

The debut deal will refinance the acquisition of two office buildings:i)
ii)

KDX Kobayashi-Doshomachi Building located in Osaka, which obtained a 3-star
DBJ Green Building certification and a Rank S CASBEE certification;
KDX Toranomon 1 chome Building located in Tokyo, which achieved a 5-star
DBJ Green Building certification and a Rank S CASBEE certification.

According to the Green Bond Framework, eligible properties must have obtained one of thefollowing certification levels: 3 stars or above in DBJ Green Building certification, B+ or
higher rank in CASBEE for Real Estate and 3-stars or above in BELS Certification. Buildings
achieving at least 10% energy or water efficiency improvements or other environmentally
beneficial refurbishments generating at least 10% improvements are also eligible.

Climate Bonds view

Underwriters

The refinanced properties achieve a good level of green building certifications, with bothcertified under the highest categories of DBJ Green Building and CASBEE. However, weencourage issuers to finance projects with at least 20% (preferably 25%) of energy / water
efficiency improvements.
MUFG, Daiwa, Nomura, SMBC

Deal comments
Credit Rating
Pricing summary
Investors summary

AA- (JCR)

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