Social Finance
The Investment Corporation has established the Social Finance Framework, believing that providing investment opportunities to investors who are active in ESG investment through Social Finance is of social significance.
The Investment Corporation received Social 1(F), the highest rating in “JCR Social Finance Framework” from Japan Credit Rating Agency, Ltd.
（Note） JCR Social Finance Framework Evaluations related to the Investment Corporation are described on the JCR website below.
https://www.jcr.co.jp/en/greenfinance/social/
Social Finance Framework
1. Use of Procured Funds
Funds raised through social bonds or social loans will be used to acquire properties that meet the following eligible criteria or to refinance the funds.
2. Selection process of projects
Under the advice of the asset manager of the asset management company, Daiwa Real Estate Asset Management (DR), the Finance Department will consider the suitability for eligible criteria, and then evaluate and select the projects.
Raising funds through Social Finance for the project is examined by the DR Sustainability Promotion Committee, deliberated by the DR Investment Committee and the Board of Directors, and approved by the Board of Directors of Investment Corporation.
3. Management of procured funds
If there are unallocated funds, the funds raised will be managed in cash or equivalent until the full amount of the funds raised is allotted.
Even after the full amount has been allocated, if the assets for which the funds are used are excluded from the portfolio due to sale, etc., the funds will be managed appropriately by the portfolio management.
【Portfolio management （Every fiscal period）】
Total balance of Social Finance ≦ Social Finance eligible debt limit（Total acquisition price of assets that meet the eligible criteria x Total assets LTV）
4. Reporting
The following items will be disclosed annually on the Investment Corporation website.
■ Financing status through Social Finance
■ The status of allocation of funds procured through Social Finance
■ Impact Reporting
<Output indicators>
Number of acquired healthcare facilities and occupancy rate etc.
<Outcome indicators>
Changes in the amount of investment in healthcare facilities of the Investment Corporation
Financing status through Social Finance
The reporting as of March 31, 2022, is as follows.
| Total acquisition price of assets held by the Investment Corporation | JPY 363.2 billion (248 properties) |
| Total acquisition price of assets that meet the qualifying criteria | JPY 108.2 billion (58 properties) |
| Total assets LTV | 51.3% |
| Maximum amount of debt eligible for social finance | JPY 55.5 billion |
| Social loan outstanding | JPY 9.9 billion |
| Total issue amount | JPY 2 billion |
The status of allocation of funds procured through Social Finance
The status of allocation of financing is as follows.
■ Social loans
| Lender | Loan Origination Date | Borrowing Amount |
Allocation status | |
| Sumitomo Mitsui Banking Corporation | October 1, 2021 | JPY 770 million | Allocated funds for the acquisition of 4 healthcare facilities （Acquired on October 1, 2021） | Press Release |
| MUFG Bank | October 4, 2022 | JPY 1,050 million | Allocated funds for the acquisition of 1 healthcare facilities（Acquired on October 4, 2022） | Press Release |
| The Norinchukin Bank | October 4, 2022 | JPY 800 million | ||
| Sumitomo Mitsui Banking Corporation | October 4, 2022 | JPY 1,000 million | ||
| Sumitomo Mitsui Trust Bank | October 4, 2022 | JPY 800 million | ||
| The Dai-ichi Life Insurance | October 4, 2022 | JPY 500 million | ||
| Mizuho Bank | March 31, 2023 | JPY 1,000 million | Allocated funds for the acquisition of 28 healthcare facilities（Acquired on April 2, 2020） | Press Release |
| Mizuho Bank | March 31, 2023 | JPY 2,000 million | ||
| Mizuho Bank | March 31, 2023 | JPY 2,000 million |
■ Social bonds
| Name | 4th Unsecured Investment Corporation Bonds of Daiwa Securities Living |
| Total issue amount | JPY 2 billion |
| Interest rate | 0.460％ per annum |
| Issue Date | January 25, 2022 |
| Redemption Date | January 23, 2032 |
| Issue period | 10 years |
| Allocation status | Allocated funds for the acquisition of 4 healthcare facilities (Charm Premier Kamakurayama, As-heim Tsunasima, Library Shin-Shibamata and Ishinkan Kamiooka) |
| Press Release | Notice Concerning Issuance of Investment Corporation Bonds (Social Bonds) |
Impact Reporting
■Output indicators
Number of acquired healthcare facilities and Occupancy rate etc.
For output indicators, please refer to Financial Results for the 32nd Fiscal Period .
■Outcome indicators
Changes in the amount of investment in healthcare facilities of the Investment Corporation.
- （Note）Changes after the merger with Nippon Healthcare Investment Corporation in April 2020 are shown.