Second-Party Opinion Download

Sustainalytics is of the opinion that the PPFA Japan VI TMK Green Loan Framework is credible and impactful and aligns with the four core components of the Green Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – Green Buildings – is aligned with those recognized by the Green Loan Principles 2021. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.

PROJECT EVALUATION / SELECTION

PPFA Japan VI TMK’s internal process in evaluating and selecting projects will be executed in collaboration with Morgan Stanley Capital K.K. and Nomura Real Estate Asset Management Co., Ltd. Senior management representatives and professionals from Morgan Stanley Capital K.K. and Nomura Real Estate Asset Management Co., Ltd. will review and confirm that the candidate project, Yokohama Nomura Building, is in line with the eligibility criteria defined by the Framework. The final decision will be made by the specified equity member of PPFA Japan VI TMK at its member's general meeting. PPFA Japan VI TMK has in place environmental and social risk management processes that are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Morgan Stanley Capital K.K.’s Investment Controller team will track and manage allocated and unallocated amounts of the green loan proceeds using electronic files. Pending allocation, the unallocated proceeds will be held in cash or cash equivalents. PPFA Japan VI TMK’s process for management of proceeds is in line with market practice.

REPORTING

PPFA Japan VI TMK intends to report on allocation of proceeds to its lenders on an annual basis until full repayment. In addition, PPFA Japan VI TMK is also committed to reporting on relevant quantitative impact metrics such as electricity and water consumption as well as qualitative information regarding environmental initiatives to both its lenders and its investors until full repayment. Sustainalytics views PPFA Japan VI TMK’s allocation and impact reporting as aligned with market practice.