NRI Green Bond | Environment | Sustainability | Nomura Research Institute (NRI)

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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 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)

Second party opinion on sustainability of Green Bond(361KB)

*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).
http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/green-bond-principles/

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.

Download(PDF)

Green Bond Assessment

FileSize:244KB

*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.

About the Partial Sale of Trust Beneficiary Rights and Determination of New Allocation

The proceeds have been newly allocated for the three following projects selected as green projects.

(1) Osaka Data Center II (O2DC) Floor Expansion Project (approx. ¥4.8 billion)
The Osaka Data Center II Floor Expansion Project (“O2DC Floor Expansion Project”)(^*2) was selected for new allocation in July 2021, with the proceeds being allocated according to the progress of construction work, and the allocation was completed at the end of 2023.

(2) THE STAR Implementation Project (approx. ¥3.3 billion)
The project for implementing “THE STAR” shared online services at Mizuho Securities Co., Ltd. (“STAR Implementation Project”)(^*3) was selected for new allocation in July 2022, and proceeds were allocated for part of NRI’s development expenses, etc. pertaining to this in December 2022.

(3) Osaka Data Center II (O2DC) Solar Panel Project (approx. ¥0.5 billion)
The project for installing solar panels at the Osaka Data Center II (“O2DC Solar Panel Project”) was selected for new allocation in July 2022, with the proceeds being allocated upon completion in December 2022.

NRI also selected the three following projects for new allocation in April 2023.

(4) NRI-CTS Project (approx. ¥700 million)
“NRI-CTS” is a carbon tracing system developed by NRI for the efficient and timely realization of tracing of information on GHG emissions in the supply chain of companies (^*4). Due to NRI-CTS contributing to the future reduction of carbon in customers and society, NRI selected the project for R&D and system and service development for this (NRI-CTS Project) for new allocation. Proceeds will be allocated for approximately ¥700 million of the expenses for the project according to progress.

(5) Tokyo Data Center I (T1DC) Solar Panel Project (approx. ¥100 million)
The project for installing solar panels at the Tokyo Data Center I was selected for new allocation based on the Green Bond Framework that specified construction and acquisition of renewable energy generation facilities as eligible green projects. The allocation of proceeds is scheduled to be performed upon completion of the project in the fourth quarter of FY March 2023.

(6) Osaka Data Center II (O2DC) Administration Building Solar Panel Project (approx. ¥0.5 billion)
The project for installing solar panels at the administration building of the Osaka Data Center II was selected for new allocation based on the Green Bond Framework that specified construction and acquisition of renewable energy generation facilities as eligible green projects. The allocation of proceeds is scheduled to be performed upon completion of the project in the fourth quarter of 2023.

The amount of proceeds allocated to the six projects above as of March 31, 2023 is approximately ¥8.6 billion, and the amount of proceeds scheduled to be allocated at the time of completion is expected to be approximately ¥9.0 billion. The finance division and the sustainability promotion division will conduct cross-sectoral consideration of eligible green projects for the approximately ¥1.0 billion for which allocation has not yet been determined based on the Green Bond Framework. Furthermore, the status of allocation of funds and the effect of environmental improvement of the projects will be reported in the ESG Data Book every year until the bonds are redeemed.

*1:
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

*2:
Osaka Data Center Ⅱ (O2DC) 2nd Building
O2DC 2nd Building is a data center with environmental management technology and security knowledge developed through data center operations spanning the half century since NRI was founded in 1965.
It utilizes the Double-Deck System, patented by NRI, and other techniques to reduce environmental impact such as minimization of cooling load and efficient processing*.
O2DC provides a top quality service level** which ensures security and safety to NRI’s various clients from finance and other industries.
- *
  
  Please refer to the following link for information on the techniques used to reduce the environmental impact, such as the double-deck system (PUE design value of O2DC after expansion: Less than 1.5)
  https://www.nri.com/en/sustainability/environment/Green_of_NRI/data_center
** Equivalent to tier 4 of the JDCC Data Facility Standard

*3:
THE STAR Implementation Project
“THE STAR” is a joint usage service for the comprehensive back office system provided to retail brokerage firms by NRI (^*). In THE STAR Implementation Project in Mizuho Securities, the power consumed by the system was reduced by approximately 25% (^**) compared to before its implementation.
- *
  
  See the following link for details on THE STAR.
  https://www.nri.com/en/service/solution/fis/the_star
** Comparison of average maximum vales for two days in specific month before and after implementation