Green Finance
TLR shares the basic stance of MIRARTH HOLDINGS Group and engages in Green and Sustainability Finance to further promote real estate investment management that considers ESG.
Green Finance Framework
Third-party Evaluation
TLR has obtained a rating of “Green 1 (F)” for our Green Finance Framework. This is the highest rating offered in JCR Green Finance Framework Evaluations conducted by the third party, Japan Credit Rating Agency, Ltd. (JCR).
For details on this evaluation, see the JCR website at https://www.jcr.co.jp/en/greenfinance/
Eligibility Criteria
Funds procured through Green Bonds or Green Loans are applied to the acquisition of eligible green assets that meet the eligibility criteria below, refinancing of those funds or funding or refinancing renovation work.
Eligibility Criteria-1
Assets that have achieved or will achieve any following certification
- (1) DBJ Green Building Certification: 3 Stars, 4 Stars, or 5 Stars.
- (2) CASBEE Certification:
- CASBEE for Buildings (New Construction) and CASBEE for Real Estate: S Rank, A Rank, or B+ Rank.
- CASBEE for Local Governments: S Rank, A Rank, or B+ Rank.
(*Validity period shall be three years from the date of construction completion.)
- (3) BELS Certification:
- based on the 2016 standard: 5 Stars, 4 Stars, or 3 Stars.(*Non-residential buildings with a BEI exceeding 0.75 are excluded.)
- based on the 2024 standard:
Non-residential buildings rated Level 6 to Level 4
Residential buildings rated Level 6 to Level 3 (for homes with renewable energy systems) or Level 4 or Level 3 (for homes without renewable energy systems).
- (4) LEED Certification (LEED O+M, LEED BD+C): Silver or higher(*Limited to v4 or later.)
Eligibility Criteria-2
Renovation work that meets any of the following（1）to（3）
- (1) Renovation work intending to improve the number of stars or the rank by one or more for any Green Eligibility Criteria-1 (green building) certification.
- (2) Renovation work under management with the objective to enhance energy efficiency, reduce water usage, and any other environmental improvements. (expected to reduce consumption or emissions by 30% or more compared to previous levels)
- (3) Installation or acquisition of equipment related to renewable energy.
Management of Financing
TLR will promptly allocate the total procured funds to projects that meet the Eligibility Criteria.
If there are unappropriated funds at the time of issuing green bonds or green loans, TLR will disclose an appropriation plan on its website.
In addition, if the property for which the proceeds will be used will no longer be a subject of the use of proceeds due to its sale,
TLR will disclose this in its press release and its website.
Upper limit of green finance procurement is calculated by total book value of Eligible Green Projects multiple by total asset LTV.
Reporting
Reporting on Status of Fund Allocation
| Balance (millions of yen) | |
|---|---|
| Green Finance | 10,950 |
| Green Bonds | 0 |
| Green Loans | 10,950 |
*The amount stated refers to the balance as of February 28, 2025.
Green Loans
This table can be scrolled sideways.
| Lender | Loans executed and outstanding (millions of yen) |
Interest rate | Borrowing date | Repayment date | Unallocated amount (millions of yen) |
Third-party evaluation |
|---|---|---|---|---|---|---|
| Sumitomo Mitsui Banking Corporation Mizuho Bank, Ltd. SBI Shinsei Bank, Limited Sumitomo Mitsui Trust Bank, Limited Aozora Bank, Limited Resona Bank, Limited THE NISHI-NIPPON CITY BANK, LTD. The Hiroshima Bank, Ltd. The Kiyo Bank, Ltd. |
3,600 | 0.98500% | August 31, 2023 | August 31, 2027 | - | JCR Green Bond Evaluation “Green 1” |
| Sumitomo Mitsui Banking Corporation Mizuho Bank, Ltd. Sumitomo Mitsui Trust Bank SBI Shinsei Bank Limited Aozora Bank, Ltd. Daishi Hokuetsu Bank, Ltd. THE NISHI-NIPPON CITY BANK, LTD The Minato Bank, Ltd. The Bank of Yokohama, Ltd. Kansai Mirai Bank, Limited The Chiba Bank, Ltd. The Aichi Bank, Ltd. The 77 Bank, Ltd. |
3,000 | 1.55000% | February 28, 2025 | February 29, 2028 | - | JCR Green Bond Evaluation “Green 1” |
| Sumitomo Mitsui Banking Corporation Mizuho Bank, Ltd. Sumitomo Mitsui Trust Bank SBI Shinsei Bank Limited Resona Bank Limited Aozora Bank, Ltd. Daishi Hokuetsu Bank, Ltd. THE NISHI-NIPPON CITY BANK, LTD The Minato Bank, Ltd. The Bank of Yokohama, Ltd. Kansai Mirai Bank, Limited The 77 Bank, Ltd. |
4,350 | 1.69000% | February 28, 2025 | February 28, 2029 | - | JCR Green Bond Evaluation “Green 1” |
Impact Reporting
DHR will annually disclose the following indicators on its website for as long as the funds procured through green finance are outstanding.
- Number and type of environmental certifications of portfolio assets
Please refer to "External Evaluations" for details. - Water consumption
- Electric power consumption (energy consumption)
- CO2 emissions (GHG emissions)
Please refer to "Environmental Performance" for details.