Sustainable Finance
Due to its involvement in real estate development and real estate-related services, the Group bears a social responsibility to build cities 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. The procurement of these is covered by the Nomura Real Estate Group Sustainability Finance Framework (Revised January 2026). In addition, the framework has undergone a third-party evaluation by Japan Credit Rating Agency, Ltd.
Nomura Real Estate Group Sustainability Finance Framework (Revised January 2026)(Japanese text only)
Third-party evaluation by Japan Credit Rating Agency, Ltd. (JCR)
Sustainability Linked Loans
Overview
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 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 Chiba Bank, on July 30, 2021. In addition, following the update of the SBT certification obtained in fiscal year ended March 2021, to a target in line with Well Below 1.5°C, we revised our comprehensive SLL Framework and raised new funds totaling 48.5 billion yen (including refinancing) on March 30, 2025.
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, the loss of nature and biodiversity, human rights and labor issues and to further reinforce our governance systems.
- *1A 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 Chiba Bank) by comprehensively defining all SLL terms that need to be specified for each contract, such as SPTs, incentives and reporting requirements.
- *2A 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
| Loan name | Sustainability-Linked Loan |
|---|---|
| Date of establishment | March 14, 2025 |
| Sustainability coordinator | Chiba Bank |
| SPTs | SBT-approved target reduction rate for total greenhouse gas emissions*3 |
| Incentive | Preferential interest rate spread according to the achievement of SPTs |
- *3A total GHG emission reduction of 60% (Scope 1 and 2) and 50% (Scope 3) by 2030 from FY2020 levels
Positive Impact Finance
Overview
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.
| Loan name | Positive Impact Finance |
|---|---|
| Institution conducting PI assessment | Sumitomo Mitsui Trust Bank/Dogin Regional Research Institute |
| Date of PI assessment obtained | March 31, 2023/September 29, 2023/January 22, 2025 |
| Lender | Sumitomo Mitsui Trust Bank/Shikoku Bank*/Hokkaido Bank |
- *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.
Sustainability Bond
Overview
Nomura Real Estate Holdings, Inc. 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.
| Name | Nomura Real Estate Holdings, Inc. 15th Unsecured Bonds (Sustainability Bond) |
|---|---|
| Total amount | 10 billion yen |
| Bond ratings (at time of issuance) | A (Japan Credit Rating Agency, Ltd.) A- (A minus) (Rating and Investment Information, Inc.) |
| Third-party (external) evaluation of sustainability 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). |
| Use of proceeds | The 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. |
Reference 1:Nomura Real Estate Group Sustainability Bond Framework (formulated in January 2021)(Japanese text only)
Reference 2: Third-party Evaluation (carried out in January 2021)
JCR’s Evaluation of the Sustainability Finance Framework (Japanese text only)
JCR’s Evaluation of the Sustainability Bond (Japanese text only)
The Second Party Opinion from Vigeo Eiris (now Moody’s Japan) (Japanese text only)
The Second Party Opinion from R&I (Japanese text only)
Reporting
①Reporting 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.
| Business Outline | Eligible Properties | |
|---|---|---|
 (Premium Midsize Office) |
This is a medium-sized office business that offers premium mid-size offices that provide high-quality working space and combine functionality and quality on a par with large-scale buildings. Based on a one-floor, one-tenant design, we ensure efficiency, independence, and safety. We are also highly trusted by companies that handle confidential information. |
PMO Nishi-Shinjuku PMO Jinbocho |
| 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 to look forward to tomorrow. 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 |
 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-type shared office that make diverse workstyles a reality. | H1T |
■Fund Appropriation Status (as of March 31, 2025)
| Sustainability Bond | Funds (Million Yen) |
|---|---|
| Procured appropriations（issue amount of the green bond less issuance costs） | 9,937 |
| Appropriations used | 9,937 |
| Appropriations to be used (as of March 31, 2025) | 0 |
- *All funds were used for refinancing.
②Impact Reporting
■Eligible Green Projects and Acquired Certification
| Properties | Certification System | Certification Level | Date of Certification |
|---|---|---|---|
| PMO Nishi-Shinjuku | DBJ Green Building |
 |
May 24, 2021 |
| PMO Jinbocho | DBJ Green Building |
 |
August 29, 2022 |
■Environmental Data about Eligible Green Projects (April 1, 2024 to March 31, 2025)
| Properties | Amount of CO2 Emitted | Amount of Energy Used | Amount of Water Used |
|---|---|---|---|
| PMO Nishi-Shinjuku | 0.794t-CO2* | 711MWh | 2,387㎥ |
| PMO Jinbocho | 0.601t-CO2* | 508MWh | 1,806㎥ |
- *The two properties mentioned above have introduced renewable energy from fiscal year ended March 2025, and GHG emissions are gradually decreasing.
■Eligible Social Projects and Property/Business Data
| OUKAS Funabashi | |
|---|---|
| Total number of units | 120 |
| Number of residents (as of March 31, 2025) | 106 |
| H1T | |
|---|---|
| Number of offices (as of March, 2025) | 152 offices (and 140 affiliated offices) |
| Membership (as of March, 2025) | Approx. 440,000 |
Green Finance
Overview
Nomura Real Estate Holdings, Inc. issues “Green Bonds” (“GB”) and borrows "Green Loans" (“GL”) as a means of raising funds to allocate to measures and projects that contribute to addressing environmental issues. In addition, the Nomura Real Estate Group Sustainability Finance Framework (Revised January 2026) is used in GB issuance and GL borrowing.
| Name | Nomura Real Estate Holdings, Inc. 16th, 17th, 18th, 19th Unsecured Bonds (Green Bond) |
|---|---|
| Total amount | 77 billion yen |
| Bond ratings(at time of issuance) | A+ (Japan Credit Rating Agency) |
| Third-party (external) evaluation of green bond | The Nomura Real Estate Group Sustainability Finance Framework has received a third-party assessment from Japan Credit Rating Agency, Ltd. (JCR), a third-party assessment agency, for its conformance with the principles of the Green Bond Guidelines, Green Loan Guidelines, and other standards. |
| Use of proceeds | Investment and loan funds to our subsidiaries to finance the development of BLUE FRONT SHIBAURA（Shibaura Project） |
| Loan name | Green loan |
|---|---|
| Lender | Mizuho Bank, Resona Bank, Gunma Bank, etc. |
| Use of proceeds | Investment and loan funds to our subsidiaries to finance the development of BLUE FRONT SHIBAURA (Shibaura Project) |
Reporting
①Allocation Reporting
■Summary of the Eligible Project
The proceeds are allocated to expenditures and investments in the following project.
| Project Outline | Project | |
|---|---|---|
 |
A project in the National Strategic Special Zone to develop a large-scale complex with an area of about 4.7 ha and a gross floor area of approximately 550,000 ㎡. 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. | BLUE FRONT SHIBAURA |
■Fund Appropriation Status (as of March 31, 2025)
| Green Bond | Funds (Million Yen) |
|---|---|
| Procured appropriations（issue amount of the green bond less issuance costs） | 76,621 |
| Appropriations used | 76,621 |
| Appropriations to be used (as of March 31, 2025) | 0 |
| Green Lawn | Funds (Million Yen) |
|---|---|
| Procured appropriations | 17,500 |
| Appropriations used | 17,500 |
| Appropriations to be used (as of March 31, 2025) | 0 |
- ※*All funds were used for refinancing.
②Impact Reporting
■Eligible Green Projects and Acquired Certification
| Project | Certification System | Certified Level | Certification Date |
|---|---|---|---|
| BLUE FRONT SHIBAURA（Shibaura Project） | LEED | Gold | ー |
| CASBEE | Rank S (scheduled) | ー |
■Environmental Data about Eligible Green Projects
| Project | CO2Emission | Energy Consumption | Water Consumption |
|---|---|---|---|
| BLUE FRONT SHIBAURA （Shibaura Project） | ー | ー | ー |
Achievements and Future Targets of Sustainable Finance Initiatives
■Achievements (as of March 31, 2025)
| Sustainability bond | 10 billion yen |
|---|---|
| Green bond | 50 billion yen |
| GL | 17.5 billion yen at 7 financial institutions |
| SLL | 473.5 billion yen across 72 financial institutions |
| PIF | 26.0 billion yen at three financial institutions |
| DBJ Employee Health Management Rated Loan, BCM Rated Loan | 10.5 billion yen at one financial institution |
| Mizuho Human Capital Management Impact Finance | 6.5 billion yen at one financial institution |
| Sustainable finance total | 594 billion yen |
■Future Target
To raise an additional 500 billion yen in sustainable finance initiatives in the five years to fiscal year ended March 2028 (cumulative total of 700 billion yen)