Sustainable Finance

Due to its involvement in real estate development and services, the Group bears a social responsibility to build communities that connect today with tomorrow’s possibilities by pursuing its vision of “New Value, Real Value.” With the goal of contributing to the sustainable development of society, we are advancing a variety of efforts, including the issuance of sustainability-linked loans and sustainability bonds.

Sustainability Linked Loans


Sustainability-linked loans (SLLs) are designed to enhance the sustainability performance of borrowers and encourage sustainable economic activities and growth. Borrower performance is measured through sustainability performance targets (SPTs), which are set in alignment with the interest rate and other loan terms with the borrowers and also with their ESG strategy. Borrowers are either incentivized or disincentivized depending on performance against SPTs.
With support from the Chiba Bank as the sustainability coordinator, the Nomura Real Estate Group established an SLL Framework*1, the first of its kind in Japan, raising a fund of 11 billion yen for financing and refinancing purposes from nine of the TSUBASA Alliance*2 member banks, including the Chiba Bank, on July 30, 2021.
We intend to increase our transactions with ESG-oriented financial institutions via the SLL Framework and thereby stabilize our procurement of sustainability funds. Meanwhile, we are strengthening our ESG initiatives to better respond to global warming, human rights and labor issues and further reinforce our governance systems."

A framework designed to facilitate SLL operations for both the borrower (e.g., the Nomura Real Estate Group) and the lenders (e.g., banks such as the Chiba Bank) by comprehensively defining all SLL terms that need to be specified for each contract, such as SPTs, incentives and reporting requirements.

A wide ranging alliance with the participation of the following ten regional banks: Chiba Bank, Daishi Hokuetsu Bank, Chugoku
Bank, Iyo Bank, Toho Bank, North Pacific Bank, Musashino Bank, Shiga Bank, Bank of the Ryukyus, and Gunma Bank.

SLL Framework Overview

Date of establishmentJuly 28, 2021
Sustainability coordinatorChiba Bank
SPTsSBT-approved target reduction rate for total greenhouse gas emissions*3
IncentivePreferential interest rate spread according to the achievement of SPTs

A total GHG emission reduction of 35% by 2030 from the FY2019 level

Positive Impact Finance


Positive Impact Finance (PIF) is based on the Principles for Positive Impact Finance developed by the United Nations Environment Programme Finance Initiative (UNEP FI) and is a loan agreement intended to comprehensively analyze and evaluate the impacts, both positive and negative, of borrowers’ business activities related to the environment, society, and economy, for supporting these activities on an ongoing basis. The loan is intended to create a positive circle for the borrower in achieving the SDGs and enhancing their financial value by utilizing the degree of contribution from corporate activities, products, and services in achieving the goals as an evaluation indicator, and by monitoring and supporting activities through engagement by the lending financial institution based on publicly disclosed information.
The Group will continue to leverage both PIF and SLLs to raise stable funds for promoting business activities that push us toward achieving the SDGs and realizing a sustainable society.

LenderSumitomo Mitsui Trust BankShikoku BankHokkaido Bank
Institution conducting PI assessmentSumitomo Mitsui Trust BankSumitomo Mitsui Trust Bank*Dogin Regional Research Institute
Drawdown dateMarch 31, 2023July 31, 2023September 29, 2023
Amount raised10 billion yen2 billion yen3 billion yen

Uses a framework that allows for flexible PI financing from multiple financial institutions and is based on the PI assessment by Sumitomo Mitsui Trust Bank.
For more details, see here.

Sustainability Bond


Nomura Real Estate Holdings issued a sustainability bond (corporate bond) to raise funds for projects that will contribute to the resolution of environmental and social issues. The Company also formulated the Nomura Real Estate Group Sustainability Bond Framework (See Reference 1) when it issued the bond.

NameNomura Real Estate Holdings, Inc. 15th Unsecured Bonds
(Sustainability Bond)
Total amount of the bond issue10 billion yen
Interest rate0.390% on an annual basis
Bond payment dateFebruary 26, 2021
Redemption date (duration of bond)February 26, 2031 (10 years)
Coupon payment dateFebruary 26 and August 26 every year
Bond ratingsA (Japan Credit Rating Agency, Ltd.)
A- (A minus) (Rating and Investment Information, Inc.)
Third-party (external) evaluation of green bond The third-party evaluation (see Reference 2) on the Nomura Real Estate Group Sustainability Bond Framework’s conformity with the Sustainability Bond Guidelines and other relevant principles was received from third-party evaluation agencies Vigeo Eiris (now Moody’s Japan KK), Japan Credit Rating Agency (JCR), and Rating and Investment Information (R&I).
Underwriters Nomura Securities Co., Ltd. (lead manager),
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (independent underwriting manager),
SMBC Nikko Securities Inc. (underwriting syndicate),
Mizuho Securities Co., Ltd. (underwriting syndicate)
Structuring agent*1Nomura Securities Co., Ltd.
(Scheduled) Use of proceedsThe bond proceeds are to be used as investments and loans for refinancing the costs of the PMO, H¹T and OUKAS businesses to Nomura Real Estate Holding’s subsidiaries.

A structuring agent supports the issuance of a sustainability bond by providing the issuer with advice on the formulation of the sustainability bond framework and the acquisition of the second opinion and third-party reviews.

Reference 1: Nomura Real Estate Group Sustainability Bond Framework (Japanese only)

Reference 2: Third-party Evaluation

JCR’s Evaluation of the Sustainability Finance Framework (Japanese only)
JCR’s Evaluation of the Sustainability Bond (Japanese only)
The Second Party Opinion from Vigeo Eiris (now Moody’s Japan) (Japanese only)
The Second Party Opinion from R&I (Japanese only)


(1) Reporting on Fund Appropriation Status

■Overview of Eligible Businesses

Bond proceeds have been appropriated to cover the expenses and investments for the following businesses and properties.

Green Project
Business Outline Eligible Properties
PMO (ピーエムオー) Premium midsize office
PMO (Premium Midsize Office)
The PMO business handles medium-sized office buildings, which feature functionality and sophistication on par with large-scale buildings and offer an excellent working space for tenants.

Basically, PMO buildings accommodate one tenant per floor to provide efficiency, independence and safety. Tenants, including those who handle sensitive information, have found that security measures taken for the buildings have also been highly reliable.
PMO Nishi-Shinjuku

PMO Jinbocho
Social Project
Business Outline Eligible Properties
The OUKAS business develops and operates elderly housing with supportive services under the aim of providing seniors with housing that enables them to enjoy their life and look forward to tomorrow every day.
OUKAS residences are designed to provide senior residents with daily wellness programs (physical exercise, diet and good sleep) and 24-hour care services.
OUKAS Funabashi
H1T (エイチワンティー) Human First Time
Human First Time
The H¹T operates pay-per-use shared office spaces to maximize people’s creativity and productivity. Comfortable, sophisticated and conveniently located, these spaces serve as superb satellite offices that make diverse workstyles a reality. H¹T

■Fund Appropriation Status (as of August, 2023)

Funds (Million Yen)
Funds raised (calculated by subtracting bond issuance expenses from amount of bond issued) 9,937
Funds spent during the period from February 26, 2021, the day of the bond issue, to the end of fiscal 2020, on March 31, 2021. (actual value) -9,937
Unspent funds as of March 31, 2021 and no change until August, 2023 0

All funds were used for refinancing.

(2) Impact Reporting

■Eligible Green Projects and Acquired Certification

PropertiesCertification SystemCertification LevelDate of Certification
PMO Nishi-ShinjukuDBJ Green Building
May 24, 2021
PMO JinbochoDBJ Green Building
August 29, 2022

■Environmental Data about Eligible Green Projects (April 1, 2022 to March 31, 2023)

PropertiesAmount of CO₂ EmittedAmount of Energy UsedAmount of Water Used
PMO Nishi-Shinjuku 146t-CO₂ 656MWh 1,875㎥
PMO Jinbocho 24t-CO₂ 138MWh 482㎥

■Eligible Social Projects and Property/Business Data

OUKAS Funabashi
Total number of units125
Number of residents (as of September 31, 2023)138
Number of offices (as of September, 2023)158 offices (and 99 affiliated offices)
Membership (as of September, 2023)Approx. 440,000

Green Bond (Shibaura Green Bond)


Nomura Real Estate Holdings, Inc. issues green bonds as a means of raising funds for projects that contribute to resolving environmental problems. When the green bonds are issued, the Nomura Real Estate Group Sustainability Bond Framework (Reference 1) is used.

Nomura Real Estate Holdings, Inc. 16th Unsecured Bond (green bond) Nomura Real Estate Holdings, Inc. 17th Unsecured Bond (green bond)
Amount 14 billion yen 6 billion yen
Coupon rate 0.698% per annum 1.311% per annum
Coupon payment date October 19, 2023
Maturity date October 19, 2028 (5 years) October 19, 2033 (10 years)
Coupon payment date April 19 and October 19 of each year
Rating (at time of issuance) A+ (Japan Credit Rating Agency)
A (Rating and Investment Information)
Second-party opinion The Nomura Real Estate Group Sustainability Bond Framework has obtained a second-party opinion, stating that it complies with the Sustainability Bond Guidelines and other relevant principles, from independent third parties Vigeo Eiris (now Moody’s Japan KK), Japan Credit Rating Agency (JCR), and Rating and Investment Information (R&I).
Underwriters Nomura Securities Co., Ltd. (lead manager),
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (independent underwriting manager),
SMBC Nikko Securities Inc. (underwriting syndicate),
Mizuho Securities Co., Ltd. (underwriting syndicate)
Structuring agent Nomura Securities Co., Ltd.
Use of proceeds Investment and loan funds to our subsidiaries to finance the development of the Shibaura Project


(1) Allocation Reporting

■Summary of the Eligible Project

The proceeds are allocated to expenditures and investments in the following project.

Green Project
Project OutlineProject
A project in the National Strategic Special Zone to develop a large-scale complex with an area of about 4.7 ha and a total floor area of approximately 550,000 m2. The entire district is designed to achieve net zero CO₂ emissions through a 45% reduction in CO2 emissions by improving the energy-saving performance of the buildings and introducing solar power generation and carbon-neutral city gas.Shibaura Project

■Allocation of proceeds (as of December 31, 2023)

Amount (million yen)
Amount of proceeds (issue amount of the green bond less issuance costs)19,892
Expenditures from time of funding (October 19, 2023) to December 31, 2023 (result)-19,892
Balance of unallocated proceeds as of December 31, 20230

(2) Impact Reporting

■Name of Eligible Green Project, Certification Obtained, and Certification Date

Project Certification System Certified Level Certification Date
Shibaura Project LEED Gold
CASBEE Rank S (scheduled)

■Environmental Data about Eligible Green Projects

Project CO2Emission Energy Consumption Water Consumption
Shibaura Project

Achievements and Future Targets of Sustainable Finance Initiatives

■Achievements (as of December 31, 2023)

Sustainability bond10 billion yen
Green bond20 billion yen
SLL273.5 billion yen across 71 financial institutions
PIF15.0 billion yen at three financial institutions
DBJ Employee Health Management Rated Loan, BCM Rated Loan6.5 billion yen at one financial institution
Mizuho Human Capital Management Impact Finance6.5 billion yen at one financial institution
Sustainable finance total331.5 billion yen

■Future Target

To raise an additional 500 billion yen in sustainable finance initiatives in the five years to fiscal 2027 (cumulative total of 700 million yen)