Biggest Green Bond Issue in Industry History: ¥130 billion
Sustainable Financing Totals Approximately ¥600 billion
May 31, 2023
Mitsui Fudosan Co., Ltd.
Tokyo, Japan, May 31, 2023 –Mitsui Fudosan Co., Ltd., a leading global real estate company headquartered in Tokyo, announced today that it has fixed the pricing on the green bonds (environmental bonds, hereinafter the “Green Bonds”) for the refinancing of the following three properties: the “Yaesu Central Tower, Tokyo Midtown Yaesu” (location: Yaesu 2-Chome, Chuo-ku, Tokyo), the “Otemachi One Tower” (location: Otemachi 1-Chome, Chiyoda-ku, Tokyo), and the “Nihonbashi Muromachi Mitsui Tower” (location: Nihonbashi Muromachi 3-Chome, Chuo-ku, Tokyo).
The Green Bonds will be Mitsui Fudosan’s fourth issuance of green bonds, following those for the “Nihonbashi Muromachi Mitsui Tower” in September 2019, the “50 Hudson Yards” in January 2022, and the “Yaesu Central Tower, Tokyo Midtown Yaesu” in July 2022. The issue amount of ¥130 billion makes this the largest green bond issuance ever by a real estate company in Japan, following our previous issue.
Our company established the Green Finance Framework and the Sustainability-Linked Loan Framework*1 to promote the “Group Action Plan to Realize a Decarbonized Society” formulated in November 2021 from a financing perspective. The issuance of the Green Bonds brings the company’s total sustainable financing, including green bonds, to approximately ¥600 billion, again the largest for a domestic real estate company.
By proactively continuing to work on sustainable financing, Mitsui Fudosan will contribute to diversification of fundraising methods and the realization of a sustainable society.
*1 For more information on the Green Finance Framework and Sustainability-Linked Loan Framework, please click here.
https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/environment/08.html
< Properties for Use of Funds >
Yaesu Central Tower
Tokyo Midtown Yaesu
Otemachi One Tower
Nihonbashi Muromachi Mitsui Tower
■ Outline of the Green Bonds
Name | Mitsui Fudosan Co., Ltd. The 82nd Unsecured Bonds (with Inter-Bond Pari Passu Clause) (Green Bonds) | Mitsui Fudosan Co., Ltd. The 83rd Unsecured Bonds (with Inter-Bond Pari Passu Clause) (Green Bonds) |
---|---|---|
Date of Issue | June 6, 2023 | |
Date of Pricing | May 31, 2023 | |
Maturity | 5 years | 10 years |
Issue Amount | ¥30 billion | ¥100 billion |
Interest Rate | 0.360% | 0.810% |
Use of Proceeds | The full amount will be used to fund the refinancing of the following three properties.*2 “Yaesu Central Tower, Tokyo Midtown Yaesu” “Otemachi One Tower” “Nihonbashi Muromachi Mitsui Tower” (Obtained DBJ Green Building Certification (5-star) for all three properties) |
|
Lead Managers | SMBC Nikko Securities Inc., Nomura Securities Co., Ltd., Daiwa Securities Co. Ltd., Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Okasan Securities Co., Ltd., Tokai Tokyo Securities Co., Ltd., BofA Securities Japan Co., Ltd. |
*2 In cases where the funds need to be redirected, they may be done so for other green projects which meet the eligibility criteria set forth in the Green Finance Framework.
■ Properties for Use of Funds
1.Yaesu Central Tower, Tokyo Midtown Yaesu
Location | 2-1, Yaesu 2-Chome, Chuo-ku, Tokyo |
---|---|
Main Uses | Offices, stores, hotel, elementary school, bus terminal, parking facilities, etc. |
Site Area | Approx. 12,390 m2 |
Total Floor Area | Approx. 283,900 m2 |
Number of Floors | 45 floors above ground, 4 floors below ground, 2 penthouse floors |
Access | Direct underground access to JR Tokyo Station (via the Yaesu Underground Shopping Area) Direct underground access to the Tokyo Metro Marunouchi Line Tokyo Station (via the Yaesu Underground Shopping Area) |
Date of Completion | August 2022 |
Examples of Environmental Initiatives |
|
2. Otemachi One Tower
Location | 2-1, Otemachi 1-Chome, Chiyoda-ku, Tokyo |
---|---|
Main Uses | Offices, commercial facilities, multipurpose hall, hotel, parking facilities, district’s air conditioning systems (the entire Otemachi One area) |
Site Area | Approx. 20,900 m2 (the entire Otemachi One area) |
Total Floor Area | Approx. 357,700 m2 (the entire Otemachi One area) |
Number of Floors | 40 floors above ground, 5 floors below ground |
Access | Direct access to Otemachi Station (the Tokyo Metro Marunouchi, Tozai, Chiyoda and Hanzomon Lines, and the Toei Mita Line) |
Date of Completion | February 2020 |
Examples of Environmental Initiatives |
|
3.Nihonbashi Muromachi Mitsui Tower
Location | 2-1, Nihonbashi Muromachi 3-Chome, Chuo-ku, Tokyo |
---|---|
Main Uses | Offices, retail stores, restaurants, theater |
Site Area | Approx. 11,483 m2 |
Total Floor Area | Approx. 166,727 m2 |
Number of Floors | 26 floors above ground, 3 floors below ground |
Access | Direct access to Mitsukoshimae Station (Tokyo Metro Ginza and Hanzomon Lines) Direct access to Shin-Nihonbashi Station (JR Yokosuka and Sobu (Rapid) Lines) |
Date of Completion | March 2019 |
Examples of Environmental Initiatives |
|
■ 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. In addition, the Group formulated the following Group guidelines related to “Realize a Decarbonized Society” and “Diversity & Inclusion Promotion” in November 2021, as well as to “Biodiversity” in March 2023. The Mitsui Fudosan Group will continue to work toward solving social issues through neighborhood creation.
[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/
Biodiversity Policy
https://www.mitsuifudosan.co.jp/english/corporate/news/2023/0413/
The initiatives covered in this press release are contributing to two of the UN’s SDGs.
Goal 7 | Affordable and Clean Energy |
---|---|
Goal 11 | Sustainable Cities and Communities |