NRI Green Bond

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 10 years
Total amount of the issuance ¥10 billion
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 and occupancy work for part of Yokohama Nomura Building Sectional Ownership and Trust Asset.
Credit Rating AA- (Rating and Investment Information, Inc.)
Second party opinion(*1) Second party opinion on sustainability of Green Bond(361KB)

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.

  • *2:"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.

The outline of Yokohama Nomura Building

Name Yokohama Nomura Building
Address 4-4-1 Minato Mirai, Nishi-ku, Yokohama, Kanagawa
Occupied floor 2nd-17th floor
Certification

CASBEE (Comprehensive Assessment System for Building Environmental Efficiency) S rank

LEED (Leadership in Energy & Environmental Design) Gold

DBJ Green Building Certification (to be certificated)

SEGES (Social and Environmental Green Evaluation System)

Status of allocation of funds raised

FY Mar. 2017 (from 1st April, 2016 to 31st March, 2017)

(millions of yen)

Category Amount
Balance at the beginning of year
 Green bond issuance 10,000
  Capital expenditures △1,226
  Bond issuance expenditures △47
Balance at the end of year 8,725
  • Notes1:The state of allocation of funds raised represents a summary of the Statement of Cash Income and Expenditure prepared according to the Green Bond Cash Management Rules.
  • 2:The Statement of Cash Income and Expenditure was subjected to an audit by Ernst & Young ShinNihon LLC (an audit of non-consolidated financial statements or financial statement items [Audit Standards Committee Report 805]).

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.

The following outlines matters related to ESG as of 31st March, 2017.

Category Category (at the time of construction)
Environment Greenhouse gas emissions while the Yokohama Nomura Building was being built*1 1,270t-CO2
Percentage of construction byproducts finally disposed*2 5.1%
Percentage of construction byproducts recycled 86.9%
Quantity of industrial waste 421.8t
Social Result of on-site audit for social issues
(including that of subcontractors)

The employees of NRI's Sustainability & Responsibility Group conducted on-site audit on 5th December, 2016.

  • NRI implemented hearing on occupational health and safety system at the construction site.
  • NRI implemented hearing and sampling confirmation on how to monitor the working hours of workers at construction sites and confirmed that no abnormal long hours work was occurring.
Labor safety and health: Number of serious industrial accidents
(including that of subcontractors)

Nil

NRI confirmed that no severe occupational accidents (over 4 days off) had occurred during the period from the start of construction to the date of on-site audit by confirming the hearing to the constructor and the daily safety management daily report.

Governance Whether there was any ESG-related dispute
(including that of subcontractors)

None

NRI confirmed that no disputes related to ESG occurred during the period from the start of construction to the date of on-site audit by hearings to the constructor.

Contribution to local communities Relation to local community stakeholders

The employees of NRI's Sustainability & Responsibility Group conducted on-site audit on 5th December, 2016.

  • NRI confirmed that the construction owner distributed the notice of construction to regional stakeholders and confirmed that the regional stakehold awared it.
  • NRI confirmed that there was no major dispute case between the constructor and the regional stakeholders.
  • *1

    : The greenhouse gas emissions while the Yokohama Nomura Building was being built do not include the following emissions:

    • Emissions from the manufacturing and processing of the materials used for the building structure
    • Emissions from transportation vehicles running outside the construction site
    • Emissions from interior work after the building structure was completed
    • Emissions from matters other than construction machines, such as local site offices and staff standby locations
  • *2: The percentage of material that was transported from interim processing facilities to final processing facilities for the construction byproducts generated

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