Mitsui Fudosan Issues ¥80 Billion in Biggest Green Bond Deal
in Japan’s Real Estate Industry
The Net Proceeds will be Allocated to Invest in Tokyo Midtown Yaesu,
Promoting Sustainable Finance towards Decarbonized Society
July 8, 2022
Mitsui Fudosan Co., Ltd.
Mitsui Fudosan Co., Ltd. (Head Office: Chuo-ku, Tokyo, Japan, President, Chief Executive Officer: Masanobu Komoda) announced today that terms and conditions have been determined for the green bond (“the Green Bond”), which will be invested in “Tokyo Midtown Yaesu” (Location: Yaesu 2-Chome, Chuo-ku, Tokyo).
This Green Bond is the third issuance of green bonds by Mitsui Fudosan, following those for refinancing in “Nihonbashi Muromachi Mitsui Tower” in September 2019 and in "50 Hudson Yards" in January 2022. It is the largest ever issuance of green bonds in Japan’s Real Estate Industry at ¥80 billion.
To promote the commitment to the “Group Action Plan for a Decarbonized Society” formulated in November 2021 from the aspect of financing, Mitsui Fudosan has established the Green Finance Framework and Sustainability-Linked Loan Framework※. By proactively working on sustainable finance in the future, Mitsui Fudosan will promote the diversification of financing and the realization of a carbon-free society.
Rendering of Tokyo Midtown Yaesu
*For more information on the Green Bond Framework and Sustainability-Linked Loan Framework, please click here.
https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/environment/08.html
■Outline of Issue
| Name | Mitsui Fudosan Co., Ltd. 79th Unsecured Bond (with Inter-Bond Pari Passu Clause) (Green Bond) | Mitsui Fudosan Co., Ltd. 80th Unsecured Bond (with Inter-Bond Pari Passu Clause) (Green Bond) | Mitsui Fudosan Co., Ltd. 81th Unsecured Bond (with Inter-Bond Pari Passu Clause) (Green Bond) |
|---|---|---|---|
| Date of Issue | July 14, 2022 | ||
| Date of Pricing | July 8, 2022 | ||
| Tenor | 5yr | 7yr | 10yr |
| Issue Amount | ¥40 billion | ¥10 billion | ¥30 billion |
| Interest Rate | 0.390% | 0.514% | 0.689% |
| Use of Proceeds | The full amount will be used as investment capital to fund Tokyo Midtown Yaesu.*1 | ||
| Lead Manager | Daiwa Securities Co. Ltd., / Nomura Securities Co., Ltd., / Mizuho Securities Co., Ltd., / Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., / BofA Securities Japan Co., Ltd., / Okasan Securities Co., Ltd., / Tokai Tokyo Securities Co., Ltd. | ||
| Green Bond Structuring Agent*2 | Nomura Securities Co., Ltd., / BofA Securities Japan Co., Ltd. | ||
- 1 There is a possibility that other green projects that meet the eligibility criteria set forth in the Green Bond Framework will be commenced, in which case a change in the allocation of funds raised may be needed.
- 2 A green bond structuring agent supports the issuance of green bonds through advice on the establishment of a green bond framework and the acquisition of the second party opinions.
< Overview of Tokyo Midtown Yaesu >
Tokyo Midtown Yaesu is the third Tokyo Midtown after Tokyo Midtown in Roppongi, Minato-ku, and Tokyo Midtown Hibiya in Yurakucho, Chiyoda-ku. Tokyo Midtown Yaesu will open at the gateway to Japan, Yaesu, also known as a diverse mobility hub for Shinkansen, subway, and bus services that connect all over Japan.
As for environmental certification, Tokyo Midtown Yaesu has received Highest (S) Rating under Japan’s CASBEE-architecture certification for new buildings, and plans to obtain either the Highest (Five-Star) or the Second-Highest (Four-Star) Ratings in DBJ Green Building Certification. *
* A-1 block. As for CASBEE-architecture certification, based on the 2016 self-evaluation
In addition, as a way to utilize green energy to realize a carbon-free society, Mitsui Fudosan will launch the “Green Energy Supply Service” in respond to the needs of tenants. The service provides tenants with green energy with environmental value of “Non-fossil Fuel Energy Certificates with Tracking” that is derived from the five solar power generation facilities owned and developed by Mitsui Fudosan.
*Reference： https://www.mitsuifudosan.co.jp/english/corporate/news/2021/0408/
| District Name | Tokyo Midtown Yaesu |
|---|---|
| Project Manager | Yaesu 2-Chome North Zone Redevelopment Project Association |
| Location | Yaesu 2-Chome, Chuo-ku, Tokyo, others |
| Purpose | (A-1 Zone) Offices, retail facilities, hotel, elementary school, bus terminal, parking spaces, etc. (A-2 Zone) Offices, retail facilities, childcare support facility, bicycle and car parking spaces, residential housing, etc. |
| Zone Area | Approx. 3.7 acres (approx. 1.5 ha) |
| Site Area | (A-1 Zone) Approx. 133,300 ft2 (12,390m2) (A-2 Zone) Approx. 11,200 ft2 (1,043m2) (Total) Approx. 144,500 ft2 (13,433m2) |
| Total Floor Area | (A-1 Zone) Approx. 3,055,900 ft2 (Approx. 283,900m2) (A-2 Zone) Approx. 62,900 ft2 (Approx. 5,850m2) (Total) Approx. 3,118,900 ft2 (Approx. 289,750m2) |
| Number of Floors / Max Height | (A-1 Zone) 45 floors above ground, 4 floors below ground, 2 penthouse floors / approx. 787 ft. (approx. 240 m) (A-2 Zone) 7 floors above ground, 2 floors below ground, 1 penthouse floor / approx. 134 ft. (approx. 41 m) |
| Architect / Builder | Basic design / execution / management: NIHON SEKKEI, INC. Architect / Builder: Takenaka Corporation Master Architect: Pickard Chilton |
| Access | JR Tokyo Station direct underground access via Yaesu Underground Shopping Area Tokyo Metro Marunouchi Line Tokyo Station direct underground access via Yaesu Underground Shopping Area 3 minutes on foot from Kyobashi Station on the Tokyo Metro Ginza Line 6 minutes on foot from Nihombashi Station on the Tokyo Metro Tozai Line, the Tokyo Metro Ginza Line and the Toei Asakusa Line |
| Schedule | Completion in August 2022 (planned) |
| Website | https://www.yaesu-project-2022.jp |
Mitsui Fudosan has advanced the development of the “Tokyo Midtown Yaesu” as a member of the Yaesu 2-Chome North Zone Redevelopment Project Association.
■Mitsui Fudosan Group’s contribution to SDGs
https://www.mitsuifudosan.co.jp/english/esg_csr/
The Mitsui Fudosan Group aims for a society that enriches both people and the planet under the principles of coexist in harmony with society, link diverse values and achieve a sustainable society, and advances business with an awareness of the environment (E), society (S) and governance (G), thus promoting ESG management. By further accelerating its ESG management, the Group will realize Society 5.0, which the Japanese government has been advocating, and contribute significantly to achieving the SDGs.
References
Group Action Plan to Realize a Decarbonized Society
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1124/
Diversity & Inclusion Promotion Declaration and Initiative Policy
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1129_02/
*The initiatives covered in this press release are contributing to mainly two of the UN's SDGs.
| Goal 7 | Affordable and Clean Energy |
|---|---|
| Goal 11 | Sustainable Cities and Communities |
