Star Asia Investment Corporation

Green Finance Framework

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What is Green Finance?

“Green Finance” is financing which procures funds limiting the use of funds to businesses which have consideration for the environment, and means borrowings or issuance of investment corporation bonds for the purpose of appropriating the full amount procured to the acquisition of eligible assets or the refinancing of such assets.
SAR recognizes the importance of serving its role in society as a listed real estate investment corporation, in addition to maximizing unitholders' interests. Under this recognition, upon conducting our real estate investment and management business, SAR is giving maximum consideration towards the Environment, Society, and Governance in order to increase corporate value by pursuing long-term sustainability and to exert comprehensive competitiveness. Going forward, SAR will continue to pursue maximization of unitholders' interest and further promote ESG related measures such as by utilizing green finance.

Green Finance Framework

SAR has established the “Green Finance Framework” (hereinafter referred to as “the Framework”) as described below in order to restrict the use of funds procured through green finance to projects which have an environmental improvement effect, and intends to procure and manage funds in accordance with the Framework.

Evaluations by External Organizations

SAR has been evaluated by Japan Credit Rating Agency, Ltd. (hereinafter referred to as “JCR”) on whether the Framework complies with the following principles and guidelines and has obtained “Green1 (F)” which is the highest rank of JCR's Green Finance Framework evaluation.

JCR's Green Finance Framework Evaluation

Use of Funds

Funds procured by green finance will be appropriated to either the acquisition of green buildings which satisfy the following eligibility criteria-1 or conducting renovation works which satisfy the eligibility critera-2, or for refinancing either of the above.

Eligibility Criteria

Eligibility Criteria-1

Properties which have obtained or renewed certification from one of the following third-party certifying organizations, or otherwise intends to obtain or renew such certification in the future.

  • DBJ Green Building certification: 5-star, 4-star, or 3-star.
  • BELS assessment
    FY2016 standard: 5-star, 4-star, or 3-star. (Note 1)
    FY2024 standard
    Non-residence: Level 6, level 5 or level 4.
    Residences without renewable energy facilities: Level 4 or level 3.
    Residences with renewable energy facilities: Level 6, level 5, level 4, or level 3.
  • CASBEE certification
    CASBEE for Buildings (New Construction), CASBEE for Real Estate: S rank, A rank, or B+ rank.
    CASBEE Local Governments Version: S rank, A rank, or B+ rank. (Note 2)
    Note 1: Excluding logistics facilities which exceed BEI=0.75.
    Note 2: Limited to buildings which are less than 3 years from date of construction completion.
Eligibility Criteria-2

Facilities and equipment etc. renovation works which satisfy one of the following criteria.

  • Renovation works which aim to improve one of the assessments or certifications under Eligibility Criteria-1 by at least one star or one rank.
  • Facilities and equipment renovation works to be conducted for managed real estate for the purpose of making beneficial improvements from an environmental perspective, such as energy efficiency, water consumption capacity etc. (such works where usage volume reduction effects of 30% or higher are anticipated compared to before).
  • Installation of or acquisition of equipment related to renewable energy.

Project Selection Standards and Process

At the Asset Manager, the Finance Management Division selects the projects for which funds procured by green finance is to be used, and the Sustainability Promotion Division deliberates and confirms the compatibility with the eligibility criteria.
Thereafter, the implementation of green finance is approved by resolution in accordance with the decision-making processes of the Asset Manager and SAR.

Method of Funds Management

The procured funds are managed in cash and deposits or cash equivalents (certificates of deposits etc.) until such time they are appropriated towards the relevant project.
Even in the case where a green eligible asset for which SAR has procured funds is sold, or if for some reason a green eligible asset fails to continue to satisfy the eligibility criteria, the total outstanding amount of green finance will be managed so that it will not exceed the total of (1) and (2) below, which shall be the upper limit of green finance procurement based on the Framework (hereinafter referred to as “Green Eligible Liabilities Upper Limit Amount”)
(1) The liabilities amount calculated by multiplying the aggregated amount of the acquisition price of Eligibility Criteria-1 [assets] as of the end of the immediately preceding accounting period by the LTV(see Note) as of the end of the immediately preceding accounting period.
(2) Renovation work funds which satisfy Eligibility Criteria-2 (excluding renovation works funds related to properties already sold).

(Note) LTV: total amount of interest bearing debt÷total amount of assets


(1) Reporting related to the Status of Appropriation of Funds

SAR, for so long as there are amounts outstanding of green finance procured based on the Framework exists, will continue to annually disclose the following items.
The appropriation status of such procured funds (until such time the full amount of the procured funds is appropriated to projects which meet the eligibility criteria.)
Green finance outstanding amount and Green Eligible Liabilities Upper Limit Amount.
※If for unavoidable reasons a part of the funds are note appropriated, such matter will be disclosed on SAR's website after receiving approval from the Asset Manager.

Status of Fund allocation

As of April 30, 2024

Green Finance Green Bonds
(million yen)
Green Loans
(million yen)
Green Bonds
Green Loans 8,200
The maximum amount of green-eligible liabilities
(Total acquisition price of Green Eligible Assets x LTV based on Total Assets)

Green Loan

Lender Amount
(million yen)
Interest Rate Drawdown date Repayment date Remarks Assets to be
Loan syndicate with Sumitomo Mitsui Banking Corporation
and Mizuho Bank, Ltd. as arrangers(note 2)
7,200 0.87215%(note 1) August 18, 2022 August 31, 2027 Unsecured/
abeno nini (Retail)
Sumitomo Mitsui Banking Corporation 500 Base rate (JBA 3 month JPY TIBOR) +0.20%(note 3) April 30, 2024 April 30, 2025 Unsecured/
Baraki Logistics
Mizuho Bank, Ltd. 500
(note 1) The interest rates shown are therefore rates reflecting the effect of interest rate swaps (effective fixing of interest rates).
(note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Shinsei Bank, Limited., Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited., and The Chiba Bank, Ltd.
(note 3) The Japanese yen TIBOR by JBA can be confirmed on the website of the JBA TIBOR Administration (
(2) Impact Reporting

SAR will disclose the following indices on the SAR website to the extent practically possible, for so long as there are amounts outstanding of green finance procured based on the Framework.

<Data related to Projects which satisfy Eligibility Criteria-1>

Environmental data

Prease refer to [ESG Environmental initiatives]
Data for all properties owned by SAR, including data for Projects which satisfy Eligibility Criteria-1.

Status of Green Buildings

Prease refer to [ESG Certification]
Data for all properties owned by SAR, including data for Projects which satisfy Eligibility Criteria-1.

<Data related to Projects which satisfy Eligibility Criteria-2>

General description of the equipment etc. renovation works (Subject property, construction works amount, timing of implementation, etc.)
Of the following items, quantitative index (before and after the renovation) for which reduction effects are anticipated.