Certification

The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds, loans & other debt instruments. Rigorous scientific criteria ensure that it is consistent with the goals of the Paris Climate Agreement to limit warming to under 2 degrees. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change.

 

Kilroy Realty

 

Kilroy Realty LP is a US based developer of premium office buildings on the West Coast. As of end of 2018, they had developed 94 properties, with a total floor area of 13 million sq ft, of which over 4 million is in San Francisco.

Energy efficiency and sustainable designs are key to their strategy. At the Global Climate Action Summit ("GCAS") 2018, they announced a 2020 zero carbon target for the operations, ie Scope 1 and Scope 2 emissions, of their properties.

Their Green Bond Framework intends for their green bonds to only finance buildings which have LEED Gold and Platinum accreditations. 

In November 2018, Kilroy Realty LP issued a green bond. The proceeds from this issuance are linked to "The Exchange on 16th Street", an office property located in Mission Bay, San Francisco. This property is finalising construction in early 2019 and tenants will move in soon after. It has received LEED Platinum.

In April 2019, they retroactively applied for, and received Climate Bonds Certification for this bond. 

This is the first Climate Bonds Certification for office buildings in the US. The assets meet the Low Carbon Buildings (Commercial) Criteria of the top 15% performing assets in a city. The Criteria threshold for this bond is 9.74 kg CO2e/m2/yr, and this property achieves 5.48.

Dropbox has leased the entire available office space.

 

DATE OF ISSUE

TYPE OF INSTRUMENT

SIZE

TENOR

COUNTRY OF ISSUE

CLIMATE BONDS SECTOR CRITERIA

VERIFIER'S REPORT

ANNUAL REPORT FURTHER INFORMATION
November 2018 Use of Proceeds USD 400 million 10 years US

Low Carbon Buildings (Commercial)

post issuance verification statement

(only post issuance necessary, as the Certification was applied for retroactively after issuance)

 

The Exchange on 16th

Dropbox tenancy

Announcement of pricing of bond

Announcement of development of 16th on Exchange

Announcement of 2020 zero carbon target