What is NRI Green Bond?
In order to realize our corporate philosophy of "Dream up the future", NRI engages in environmental, social and governance activities to create company value.
As one of these activities, NRI issued a Green Bond (Nomura Research Institute, Ltd. 3rd series unsecured corporate bonds).The purpose is to activate the green investment market in Japan and to be a leader in realizing a sustainable future.
The outline of NRI Green Bond
- Bond Name
NRI Green Bond (Nomura Research Institute, Ltd. 3rd series unsecured corporate bonds)
- Issue Date
16th of September 2016
- Redemption period
- Total amount of the issuance
- Determination date of issue terms
9th of September 2016
- Use of proceeds
The net proceeds of the bond will be used to finance the acquisition of trust beneficiary rights with part of Yokohama Nomura Building as the trust asset, and capital investment pertaining to the building.
(Part of the trust beneficiary rights were sold in May 2021. Please refer to “About the Partial Sale of Trust Beneficiary Rights” for details.)
- Credit Rating
AA- (Rating and Investment Information, Inc.)
- Second party opinion(*1)
The second party independent opinion of Vigeo Eiris which evaluates environmental, social and governance issues, regarding NRI Green Bond aligned with Green Bond Principles(*).
*Green Bond Principles: The guideline regarding Green Bond Issuance is written by Green Bond Principles Executive Committee which is facilitated by ICMA (International Capital Market Association).
The NRI Green Bond as noted above obtained an "R&I Green Bond Assessment"(*2) of the highest grade GA1 ("Green bond proceeds are used to invest in projects with environmental benefits to a significant degree") from Rating and Investment Information, Inc. on 9th of September 2016.
Green Bond Assessment
"R&I Green Bond Assessment" is R&I's opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits, and it is expressed on a five-point scale of GA1 (significant degree) to GA5 (limited degree).
This information has been disclosed only for the purpose of publicly announcing the issuance of debt securities by Nomura Research Institute and not for the purpose of soliciting investment or engaging in any other similar activities.
About the Partial Sale of Trust Beneficiary Rights
In September 2016, Nomura Research Institute issued ¥10 billion in NRI Green Bonds (3rd series unsecured corporate bonds), and the ¥9.953 billion in new proceeds were allocated to the acquisition of ¥8.364 billion in trust beneficiary rights with part of the Yokohama Center (Yokohama Nomura Building), which obtained top-class environmental certification in Japan※, as the trust asset and ¥1.589 billion in funds for capital expenditure pertaining to the building.
Recently NRI decided to sell part of the trust beneficiary rights (60% of the trust beneficiary rights acquired using NRI Green Bonds) in May 2021. The proceeds from the recent sale will be managed in a dedicated account until they are allocated to an eligible green project in future.
NRI intends to continue using the Yokohama Nomura Building after the partial sale of the trust beneficiary rights and will continue business activities aimed at reducing environmental impact.
An eligible green project will be selected with the involvement of the Environmental Promotion Division based on the perspective of the effect of environmental improvement, and the status of allocation of funds and the effect of environmental improvement of the project will be reported in the ESG Data Book annually until the bonds are redeemed.
Furthermore, a second party opinion on the eligibility of the “NRI Green Bonds” as being corporate bonds following the principles of green bonds specified by the International Capital Market Association (ICMA) was obtained from V.E. (Vigeo Eiris) in September 2016, and the bonds obtained an “R&I Green Bond Assessment” of the highest grade GA1 (Green bond proceeds are used to invest in projects with environmental benefits to a significant degree) from R&I on 9th of September 2016.
※Environmental certification obtained by Yokohama Center (Yokohama Nomura Building)
- CASBEE (Comprehensive Assessment System for Built Environment Efficiency) S Rank
- LEED Gold
- DBJ Green Building certification 5 stars*
- SEGES (Social and Environmental Green Evaluation System)
*A building with superior “consideration for the environment and society” of the best class in Japan
The outline of Yokohama Nomura Building
Yokohama Nomura Building
4-4-1 Minato Mirai, Nishi-ku, Yokohama, Kanagawa
- Occupied floor
CASBEE (Comprehensive Assessment System for Building Environmental Efficiency) S rank
LEED (Leadership in Energy & Environmental Design) Gold
DBJ Green Building Certification 5 stars*
SEGES (Social and Environmental Green Evaluation System)
* The Japanese top class building considering environment and society.
Status of the project
In April 2017, NRI acquired the trust beneficiary rights to the Yokohama Center (Yokohama Nomura Building), for which the proceeds from the NRI Green Bond are to be used, and began to use the building as a tenant.
Environmental assessment on target facilities
Yokohama Center (Yokohama Nomura Building)
Environment load information: Input (resources used)
Environment load information: Output (impact on environment)
Yokohama Minato Center (Yokoyama Dia Building)
Comparison between Yokohama Nomura Building and Yokoyama Dia Building
When conducting the environmental assessment on the Yokohama Nomura Building, a comparison was conducted with the Yokohama Dia Building that was the main transfer source.
Emissions per employee is calculated based on the standard use area per person of 2.5 tsubo (8.3m2) that is prescribed as the office standard for NRI.
Because the energy resources for the Yokohama Nomura Building are electricity, city gas, and cold water and steam, total heat, greenhouse gas emissions, emissions per floor area, and emissions per employee are calculated based on these resources.
The scope of the limited assurance by Ernst & Young ShinNihon LLC was limited to the Indicators marked with the symbol "?"