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Kajima Green Bonds

Purpose and Background of Issuing Green Bonds
Issued on February 28, 2020

We issued Kajima Green Bonds (46th Unsecured Corporate Bonds) in February 2020 in order to help a broad range of stakeholders recognize our advanced environmental initiatives. The Kajima Group formulated the Kajima Environmental Vision: Triple Zero 2050 as the basis of its environmental initiatives and it actively promotes initiatives to create a sustainable society. To reflect the signing of the Paris Agreement, we aim to reduce our greenhouse gas emissions compared to fiscal 2013 by 80% or more no later than 2050. We have also identified "contributing actively to society’s transition to a low carbon footprint," as one of our material issues in 2019.

The funds raised through this issue of green bonds are allocated to the development of green buildings that conform to the Kajima Environmental Vision.

Overview of Green Bonds

Name Kajima Corporation 46th Unsecured Corporate Bonds
(with a special pari passu condition applied to corporate bonds only) (green bonds)
Alternative name Kajima Green Bonds
Date of issuance February 28, 2020
Date of setting terms February 21, 2020
Total issue amount 10 billion yen
Maturity 5 years
Interest rate of issue 0.110%
Use of proceeds (1) Yokohama Gate Tower: Refinance construction costs (¥6 billion) (scheduled)
(2) KT Building: Refinance construction costs (¥4 billion) (scheduled)
Lead managing underwriters SMBC Nikko Securities Inc., Daiwa Securities Co. Ltd. Nomura Securities Co., Ltd., Mizuho Securities Co., Ltd.
Green Bond
Structuring
Agent
SMBC Nikko Securities Inc.
Assigned rating A+ (Rating and Investment Information, Inc.)

Eligibility as Green Bonds

For the issuance of green bonds, the Company established a green bond framework that is aligned with the Green Bond Principles 2018 (Note 1) and the Japanese Green Bond Guidelines 2017 (Note 2).

As a third-party evaluation of green bonds, we have obtained from Rating and Investment Information, Inc. (R&I) a second-party opinion which states that R&I Green Bond Assessment has found that our green bond framework is in line with the Green Bond Principles 2018 and Japanese Green Bond Guidelines 2017. In addition, our green bonds have received from R&I the highest level of evaluation, GA1 (Note 3).

Furthermore, R&I, which is a supporter of the Company’s issuance of green bonds, has received from the Green Finance Organization a notice informing that the Company has been chosen as a recipient of a subsidy with respect to the acquisition of a third-party evaluation for the Issuance under a FY 2019 project to support the organization of green bond issuance promotion systems operated by the Ministry of the Environment of Japan.


(Note 1) The Green Bond Principles 2018 refer to the guidelines for the issuance of green bonds developed by the Green Bond Principles Executive Committee, a private group for which the International Capital Market Association (ICMA) plays the functions of secretariat.

(Note 2) The Japanese Green Bond Guidelines 2017 refer to the guidelines developed and published by the Ministry of the Environment of Japan in March 2017 for the further promotion of green bonds in Japan. The Guidelines are designed to present specific examples and interpretations that are aligned with the characteristics of Japan, while care is taken to make sure their consistency with the Green Bond Principles. Market participants can refer to them in practical operations when considering specific actions on green bond.

(Note 3) R&I Green Bond Assessment assesses the degree to which the proceeds of green bonds are invested in projects that contribute to the resolution of environmental problems based on the evaluation criteria that include the items listed in the Green Bond Principles. The projects are given a mark that corresponds to one of the five assessment levels and will be monitored until there is no outstanding bond. R&I may offer a second-party opinion on the green bond framework in connection with this assessment. A second-party opinion refers to an evaluation conducted to assess whether a green bond framework established by an issuer or others is in line with the Green Bond Principles and other such guidelines.

Announcement of Investments in Our Green Bonds

This section lists investors that announced investments in our green bonds.

List of investors that announced investments

(as of February 28, 2020, in Japanese alphabetical order)

  • Asset Management One Co., Ltd.
  • The Bank of Iwate, Ltd.
  • FA Foundation
  • OTEC CORPORATION
  • THE KITAOSAKA SHINKIN BANK
  • The Bank of Kyoto, Ltd.
  • KOMAIHALTEC INC.
  • SUMITOMO LIFE INSURANCE COMPANY
  • Daitokyo Credit Cooperative
  • THE BANK OF NAGOYA, Ltd.
  • NIHON DENGI CO., LTD.
  • HIGASHI-NIPPON BANK, Ltd.
  • The Fukui Bank, Ltd.
  • BlackRock Japan Co., Ltd.
  • Mie Prefecture credit federation of agricultural cooperatives

Overview of the Green Project

We issued Kajima Green Bonds in order to refinance the construction of the Yokohama Gate Tower, which is currently underway in Block 58 in the Minatomirai 21 Central District in Nishi-ku, Yokohama City, Kanagawa, and of KT Building, whose construction was completed in August 2016 in Motoakasaka 1-chome, Minato-ku, Tokyo.

Name of building Yokohama Gate Tower
Project owners KAJIMA CORPORATION, SUMITOMO LIFE INSURANCE COMPANY, Mitsui Sumitomo Insurance Company, Limited
Scheduled site 12 lots including 1-2-50 Takashima, Nishi-ku, Yokohama City
Main intended usage Offices, crowd attraction facilities, stores, parking
Site area 9,307.95 square meters
Total floor area Approx. 84,000 square meters
Structure Steel-frame structure (Vibration suppression structure)
Floors 1 basement story and 21 aboveground stories
Maximum height 109 meters
Designed/supervised by KAJIMA CORPORATION
Built by Joint venture of KAJIMA CORPORATION, TEKKEN CORPORATION, and OMATA KK.CORPORATION Inc.
Construction began in April 2019
Construction completes in Around autumn of 2021 (scheduled)
Main environmental certifications ・CASBEE Yokohama self-assessment class A BEE=1.8 BEI=0.83

* The information contained here is as of the date of publishing and may be subject to change in the future.

Visual impression of the completed Yokohama Gate Tower

Visual impression of the completed Yokohama Gate Tower

Name of building KT Building
Project owner KAJIMA CORPORATION
Address 1-3-8 Motoakasaka, Minato-ku, Tokyo
Main intended usage 1st to 12th floors: office space
Site area 1,866.03 square meters
Total floor area 11,791.87 square meters
Structure Steel-frame structure (CFT structure); partly RC structure
Floors 1 basement story, 12 aboveground stories, 1 PH story
Maximum height 54.91 meters
Designed/supervised by KAJIMA CORPORATION
Built by KAJIMA CORPORATION
Construction began in September 2014
Construction completed in August 2016
Main environmental
certifications
・CASBEE Class S third-party certification BEE=8.1
・BELS certification (☆☆☆☆☆) BEI=0.46 First office building in Japan to receive ZEB Ready certification.
・Selected as one of the FY2014 Leading Housing/Building Projects for CO2 Emissions Reductions (currently, Sustainable Building and Other Leading Projects)
・Received the 57th Society of Heating, Air-Conditioning and Sanitary Engineers of Japan (SHASE) Technology Award (Building Facilities Section) in May 2019
Achievement: Achieved ZEB Ready with the aim to spread it in KT Building

KT Building exterior (distant view)

KT Building model room

KT Building exterior (closeup view)

Reporting

Until all the raised funds are allocated to eligible projects, Kajima publishes reports on the status of the allocation of the raised funds on our website. We also report on environmental impact related to the metrics of eligible projects on our website once a year starting one year after the issuance of green bonds until they are redeemed.

Reporting on Kajima Green Bonds (46th Unsecured Corporate Bonds)

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