NOMURA REAL ESTATE MASTER FUND, INC.

TSE code :3462

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Green Finance

NMF practices investment management taking into consideration Environment, Society and Governance (“ESG”). As a part of such initiatives, NMF strives to realize a sustainable environment and society by implementation of green finance including green bonds and green loans etc...

Green Bonds

Green bonds are a type of bond instrument to finance eligible green projects and they are issued in accordance with the Green Bond Principles established by the International Capital Markets Association.

Green Loans

Green loans, like green bonds, are borrowings to procure funds to be used for environmentally friendly businesses, in accordance with the Green Loan Principles, an international guideline.

Green Finance Framework

NMF established Green Finance Framework in order to implement green finance.

(1)Use of Proceeds

NMF will allocate all procured proceeds from green finance for the following funds.

The funds for acquisition of eligible green projects(*)
The funds for refinancing of borrowings used to acquire eligible green projects
The funds for redemption of outstanding investment corporation bonds issued to acquire eligible green projects.
(*) Eligible green projects are existing or new specified assets that fulfill the criteria indicated in (2) Eligible Green Projects shown below.

(2)Eligible Green Projects

Eligible green projects must acquire any of the valid certifications or be recertified in a. through c. below within 36 months after the date of receiving proceeds from green finance, or must be scheduled to acquire such (re)certification in the future.

a. 3, 4, or 5 Stars under DBJ Green Building Certification
b. 3, 4, or 5 Stars under BELS Certification
c. B+, A or S rank under CASBEE Certification for Real Estate.

Please refer to NMF's acquisition status of environmental certifications.

(3)Project Evaluation and Selection Process

Eligible criteria are established by the Sustainability Promotion Committee (committee chaired by the Head of the NMF Investment Management Group) of Nomura Real Estate Asset Management Co., Ltd., the asset management company of NMF, and determined by the Investment Committee.
Eligible green projects in which proceeds from green finance will be invested are evaluated and chosen by the NMF Investment Management Group and Finance & Accounting Department based on eligible criteria, and the selection is made upon approval by the Investment Committee or the Head of the NMF Investment Management Group based on decision-making authority rules of the asset manager.

(4)Management of Proceeds

NMF shall set the debt amount calculated by multiplying the total book value of eligible green projects owned by NMF by total assets LTV (Loan-to-Value Ratio) as of the most recent fiscal period end calculable as of the date of obtaining proceeds (the "Eligible Green Debt Amount") as the upper limit of the balance of green finance. NMF manages to ensure that the balance of green finance will not exceed the Eligible Green Debt Amount. Furthermore, as long as the balance of green finance exists, NMF will internally track and manage the allocated funds on a portfolio basis.

Total Eligible Green Projects 367,7 billion yen
LTV 44.5%
Debts of Eligible Green Projects 163,6billion yen
(Note) The total book value of eligible green project and LTV ratio are as of the end of February 2019.

(5)Reporting

a. Reporting on Allocation of Proceeds
  NMF's allocation of proceeds as to green finance is as follows.
Total amount of outstanding green bonds 3,000 million yen
Amount of proceeds not yet allocated -
Name Amount issued
(Millions of yen)
Interest rate Issuance date Redemption date Term
Nomura Real Estate Master Fund, Inc.
Unsecured Bonds No.4
(Green Bonds)
3,000 0 September 20, 2019 September 20, 2029 10 Years
b. Impact Reporting
  NMF shall disclose the following indices as of the end of every February as long as the balance of green finance remains.
・Number of Eligible Green Projects
・Level of each green certification acquired
・Greenhouse gas (GHG) emissions, energy consumption and water consumption at Eligible Green Projects (however, the target is limited to properties or parts of buildings where NMF possesses control authority.)

Evaluation by External Organization

NMF has acquired “Green 1(F)”, the highest rating in JCR Green Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR) for its eligibility of green finance framework.

JCR Green Finance Evaluation:https://www.jcr.co.jp/en/greenfinance/green/

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