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Aiming for sound management that can coexist with the environment and society, United Urban and Marubeni REIT Advisors Co., Ltd. (“MRA”) have been engaged in real estate investment and management with consideration for ESG.
UUR has implemented various initiatives, such as being the first J-REIT to raise funds through a Green Trust Loan and issuing Sustainability Bonds. In order to further expand the investor base interested in sustainable investment, strengthen the foundation for additional fundraising, and implement agile sustainability finance, UUR formulated the Sustainability Finance Framework (hereinafter referred to as "the Framework") in June 2023.
For the status of all interest-bearing debt of United Urban, please refer to “Financial Information” of the United Urban’s website
With assets that meet the eligibility criteria (described below) set in the Framework being underlined, United Urban may conduct financing (borrowing and issuance of investment corporation bonds; the same shall apply hereafter) as defined below. Each type of financing is collectively referred to as “Sustainability Finance, etc.”.
The eligibility criteria set in the Framework are as follows.
Assets that have already acquired or are expected to acquire certifications below (collectively named as “Environmental Certification”).
Construction works that meet the following criterion and have been completed within the past 3 years from the date of financing or are expected to be completed.
Assets offering the following benefits en bloc.
UUR shall manage the amount of procurement, such as sustainability financing, etc., so as not to exceed the limit amount. In case that the procurement amount exceeds the limit, the difference will be managed separately in cash or cash equivalents.
The maximum amounts for Green Finance and Social Finance shall be calculated by the following formula (all figures are as of the end of the latest fiscal period). The amount of procurement of Sustainability Finance, a combined financing of Green Finance and Social Finance, shall be proportionately included in the amount of procurement of each financing and shall be managed so as not to exceed each limit.
The fund proceeds will be used for the set projects within 6 months after procurement. Until then, the proceeds will be separately managed in cash or cash equivalents.
Green finance limit = Book value of Eligible Green Assets x Total asset LTV (Note) + Funds for renovation work that satisfies Eligible Green Criteria B
Social finance limit = Book value of Eligible Social Assets x Total asset LTV (Note)
Classification | Lender | Balance (Millions of yen) |
Interest Rate |
Drawdown Date |
Maturity Date |
Remarks |
---|---|---|---|---|---|---|
Long-term | The 77 Bank, Ltd. | 1,500 | JBA 3-month Japanese yen TIBOR+0.18% | Mar. 21, 2024 |
Mar. 21, 2028 |
Unsecured Unguaranteed Floating interest rate (Note 1) |
Long-term | The Hachijuni Bank, Ltd. | 1,000 | JBA 3-month Japanese yen TIBOR+0.20% | Feb. 1, 2024 |
Jun. 20, 2028 |
Unsecured Unguaranteed Floating interest rate (Note 1) |
Long-term | Sumitomo Mitsui Banking Corporation | 2,000 | JBA 3-month Japanese yen TIBOR+0.25% | Sep. 20, 2023 |
Sep. 20, 2028 |
Unsecured Unguaranteed Floating interest rate (Note 1) |
Long-term | Mizuho Trust & Banking Co., Ltd. | 1,000 | JBA 3-month Japanese yen TIBOR+0.22% | Mar. 21, 2024 |
Sep. 20, 202 |
Unsecured Unguaranteed Floating interest rate (Note 1) |
Long-term | Sumitomo Mitsui Trust Bank, Limited (Trust Account) |
2,500 | JBA 3-month Japanese yen TIBOR+0.23% | Mar. 29, 2024 |
Mar. 30, 2029 |
Unsecured Unguaranteed Floating interest rate (Note 1) Specified money trust type |
Long-term | Resona Bank, Limited | 2,000 | 0.95080% p.a | Feb. 1, 2024 |
Dec. 20, 2029 |
Unsecured Unguaranteed Fixed interest rate (Note 1) |
Long-term | Sumitomo Mitsui Banking Corporation | 2,500 | 0.99574% p.a | Mar. 21, 2024 |
Sep. 20, 2030 |
Unsecured Unguaranteed Fixed interest rate (Note 1) |
Long-term | Shinkin Central Bank | 2,000 | 1.08124% p.a | Feb. 21, 2024 |
Dec. 20, 2030 |
Unsecured Unguaranteed Fixed interest rate (Note 1) |
Long-term | Sumitomo Mitsui Banking Corporation | 2,000 | 1.13750% p.a. | Sep. 20, 2023 |
Sep. 22, 2031 |
Unsecured Unguaranteed Fixed interest rate (Note 1) |
Long-term | Sumitomo Mitsui Trust Bank, Limited (Trust Account) |
5,000 | 1.29850% p.a. (Note 2) |
Sep. 29, 2023 |
Sep. 30, 2032 |
Unsecured Unguaranteed Fixed interest rate (Note 2) (Note 1) Jointly Operated Designated Money Trust |
Long-term | Sumitomo Mitsui Trust Bank, Limited (Trust Account) | 5,000 | 1.38850% p.a. (Note 2) |
Sep. 29, 2023 |
Sep. 30, 2033 |
Unsecured Unguaranteed Fixed interest rate (Note 2) (Note 1) Jointly Operated Designated Money Trust |
Total | 26,500 |
Classification (Note 1) |
Lender | Balance (Millions of yen)(Note 2) |
Interest Rate |
Drawdown Date |
Maturity Date |
Remarks |
---|---|---|---|---|---|---|
Long-term | Sumitomo Mitsui Trust Bank, Limited (Trust Account) | 2,000 | 0.39000% p.a. | Mar. 29, 2019 |
Mar. 31, 2026 |
Unsecured Unguaranteed Fixed interest rate Green Loan Evaluation: Green1 (JCR) Jointly Operated Designated Money Trust |
Total | 2,000 |
Name | Issue Date |
Issue Amount (Millions of yen) |
Interest Rate |
Term | Redemption Date |
Remarks |
---|---|---|---|---|---|---|
Series 19 of Unsecured Corporate Bonds (with pari passu conditions among corporate bonds) (Green Bonds) |
May 23, 2019 |
10,000 | 0.448% p.a. | 7 years | May 22, 2026 |
Unsecured / Unguaranteed Rating: AA (JCR) Green Bond Evaluation: Green1 (JCR) For retail investors |
Series 23 of Unsecured Corporate Bonds (with pari passu conditions among specified corporate bonds) (Green Bonds) |
Oct. 17, 2023 |
7,000 | 0.460% p.a. | 3 years | Oct. 16, 2026 |
Unsecured / Unguaranteed Rating: AA (JCR) Green Bonds (Note) For institutional investors |
Total | 17,000 |
Name | Issue Date |
Issue Amount (Millions of yen) |
Interest Rate |
Term | Redemption Date |
Remarks |
---|---|---|---|---|---|---|
Series 22 of Unsecured Corporate Bonds (with pari passu conditions among specified corporate bonds) (Sustainability Bonds) |
Oct. 28, 2021 |
3,500 | 0.400% p.a. | 10 years | Oct. 28, 2031 |
Unsecured Unguaranteed Rating: AA (JCR) Sustainability Bond Evaluation: SU 1 (JCR) For institutional investors |
Total | 3,500 |
If green finance or social finance remains a balance, United Urban is to announce the following KPIs on United Urban's website.
Total amount of funds raised(Note) | JPN 48,500 million |
---|---|
Total amount of unallocated funds | - |
Maximum amount | JPN 184,027 million |
Total amount of funds raised(Note) | JPN 500 million |
---|---|
Total amount of unallocated funds | - |
Maximum amount | JPN 726 million |
Number of Eligible Green Assets | Acquisition Price (Millions of yen) |
Electricity Consumption (GJ)(Note) |
Water Consumptions (thousand m3)(Note) |
CO2 Emissions (thousand t-CO2)(Note) | ||
---|---|---|---|---|---|---|
Scope 1 | Scope 2 | Scope 3 | ||||
72 | 452,652 | 569,412 | 3,869 | 2 | 12 | 66 |
Property names and the property usages subject to social financing
Capacity of each property subject to social financing
Realization of sustainable cities and contribution to local communities
Output KPI | Outcome KPI | ||
---|---|---|---|
Property No. | Property Name | Property Usage | Capacity(Note) |
E20 | Granda Miyanomori | Healthcare facility (Private elderly housing) |
71 |
Each sustainability finance has received a third-party evaluation from Japan Credit Rating Agency, Inc. (JCR). Please see the JCR’s website for the details of this evaluation.
UUR has implemented the borrowing which UUR utilizes the positive impact finance scheme provided by Sumitomo Mitsui Trust Bank, Limited ("SMTB"). The borrowing is loan by SMTB based on the Principles for Positive Impact Finance (Note 1) advocated by the United Nations Environment Program Finance Initiative ("UNEP FI") (Note 2) and tis model framework (an investment and loan framework for business companies with no restrictions on the use of funds and a framework for real estate investment).
For the borrowing, UUR has received qualitative and quantitative evaluations from SMTB regarding the themes which UUR will make contributions to achievement of the SDGs as per the following table.
In addition, SMTB has obtained a third-party opinion (Note 3) from Japan Credit Rating Agency, Ltd. on compliance of the evaluation's procedures with the Principles for Positive Impact Finance and rationality of the assessment metrics used.
PIF is a finance initiative where a financial institution comprehensively analyzes and evaluates the impacts (both positive and negative) of a company’s activities on the economy, society and the environment.
In PIF, targets are set by the company to alleviate negative impacts and maximize positive ones. And the financial institution focuses on successive engagement with the company in order to ensure the realization of these targets by the company. Specifically, the financial institution uses degree of the company’s contribution to the SDGs achievement as assessment metrics and conducts monitoring based on their publicly disclosed information.
Total amount of funds raised | JPN 10,000 million |
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