About the Sustainability Bond

Tokyu Fudosan Holdings Corporation (“the Company”) addresses social issues through its business operations, with the aim of realizing a sustainable society and continuously creating value of the Tokyu Fudosan Holdings Group (“the Group”). 
The Company has decided to issue a Sustainability Bond in order to more widely communicate the Group’s initiatives for addressing the environmental and social issues to broader stakeholders and contribute to the realization of a sustainable society through the projects financed with the proceeds from the bonds.
The issuance of the Sustainability Bonds is based on the Company’s Sustainability Finance Framework formulated in line with the “Green Bond Principles 2018,” the “Social Bond Principles 2018,” the “Sustainability Bond Guidelines 2018” and the “Green Loan Principles 2018” published by the International Capital Market Association (“IMCA”) and the “Green Bond Guidelines 2020” published by Japan’s Ministry of the Environment and has obtained an evaluation from a third-party assessment agency to verify the alignment with such principles and guidelines.

Overview

Issue Name Tokyu Fudosan Holdings Corporation the 2nd Unsecured Subordinated Bonds with the Optional Interest Payment Deferral and Optional Early Redemption Clauses (Sustainability Bond)
Pricing Date December 9, 2020
Issue Date December 17, 2020
Maturity Date December 17, 2060
Optional Early Redemption The bonds may be redeemed prior to maturity at the discretion of the Company on any interest payment date on or after December 17, 2030
Total Issue Amount 30 billion yen
Interest rate 1.24% per annum (*1)
Use of Proceeds All funds were fullly allocated to the redemption funds of the commercial paper, for the refinancing funds related to expenditures or investments concerning the existing or new assets of the five projects: 1. TOKYO PORTCITY TAKESHIBA; 2. Kudan Minami 1-chome Project (tentative name); 3. Membership-based Shared Office Business, “Business-Airport;” 4. Start-up Support and Co-creation Business; and 5. Senior Housing Business.
Credit Rating BBB+ (Japan Credit Rating Agency, Ltd.)

(*1) The fixed interest rate shall be applied from the day immediately following December 17, 2020 until December 17, 2030 and variable interest rates shall be applied from the day immediately following December 17, 2030 (Coupon Step-up shall be effective on December 18, 2030)

Investment Announcements for Tokyu Fudosan Holdings Corporation Sustainability Bond

Please see the following investors that have announced their investments in the Tokyu Fudosan Holdings Corporation Sustainability Bond
(As of December 9, 2020 / Alphabetical order)

  • Akita Shinkin Bank
  • Asahi Mutual Life Insurance Company
  • Asset Management One Co., Ltd.
  • Daiwa Asset Management Co.Ltd.
  • ECHIZEN SHINKIN BANK
  • Fukue Shinyokumiai
  • FUKUOKA HIBIKI SHINKIN BANK
  • GUNMAMIRAI Shinkumi Bank.
  • Himifusiki Shinkin Bank
  • Hokkaido Zennsinnbunnhannbaijuugyouinnfukurikyoukai
  • Ichinoseki Shinkin Bank
  • IIDA SHINKIN BANK
  • KANAGAWA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL CO-OPERATIVES
  • KITAMI SHINKIN BANK
  • Koto Shinkin Bank
  • Kyoei Community Bank
  • Manulife Investment Management (Japan) Limited
  • Medical Corporation Nanzankai
  • Meiji Gakuin Educational Foundation
  • Meiji Yasuda Asset Management Company Ltd.
  • Midori Life Insurance Co., Ltd.
  • Mitsubishi UFJ Trust and Banking Corporation
  • Moka Shinkumi Bank
  • Nagahama Shinkin Bank
  • Nagano Prefecture credit federation of agricultural cooperatives
  • Nagaoka Shinkin Bank
  • NAGASAKI MITSUBISHI CREDIT UNION
  • Niigata credit union
  • Niigata daiei shinkumi bank
  • NISHI CHUGOKU SHINKIN BANK
  • Nishihyogo Shinkin Bank
  • Public Corporation for Housing Improvement and Development
  • SAGA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL COOPERATIVES
  • SAGAHIGASHI SHINYOUKUMIAI
  • Seiwa Shinkumi Bank
  • Sumitomo Mitsui DS Asset Management Company, Limited
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.
  • TAIYO LIFE INSURANCE COMPANY
  • The Aichi Bank, Ltd.
  • The Aichikenchuo Credit cooperative
  • THE CHUNICHI SHINKIN BANK
  • The Ishinomaki Shinkin Bank
  • The Kimitsu Credit Cooperative
  • THE MISHIMA SHINKIN BANK
  • THE MIZUSAWA SHINKIN BANK
  • The Nara Shinkin Bank
  • THE SANJO SHINKIN BANK
  • THE TANYO SHINKIN BANK
  • THE YAMATO SHINKIN BANK
  • Tokio Marine Asset Management Co., Ltd.
  • Toryo Shinkumi

Allocation Report

On March 12, 2021, the proceeds from this sustainability bond were fully allocated to redemption of existing commercial paper to refinance the construction funds related to the five projects: "TOKYO PORTCITY TAKESHIBA"; the "Kudanminami 1-chome Project (tentative name)"; Membership Shared Office Business, “Business-Airport”; Support For Start-ups and Co-creation Business; and Senior Housing Business.

Proceeds from this sustainability bond
(After deducting the estimated issuance expenses)
Appropriations Used
JPY 29,711 million The "TOKYO PORTCITY TAKESHIBA":JPY 12,000 million
The " Kudanminami 1-chome Project (tentative name)":JPY 4,000 million
Membership Shared Office Business, the “Business-Airport”:JPY 1,000 million
Support for Start-ups and Co-creation Business:JPY 300 million
Senior Housing Business:JPY 12,411 million

Sustainability projects to be financed with the proceeds from the Sustainability Bonds

TOKYO PORTCITY TAKESHIBA

TOKYO PORTCITY TAKESHIBA is a large-scale complex construction project that aims to connect people, information and businesses across the world with a focus on “Digital x Content,” creating a new lifestyle where people live close to their workplaces. The project develops an international business base by utilizing the land owned by the Tokyo metropolitan government and promotes the area management through an industry-government-academia collaboration.

For an overview of the project, please refer to the following news release.

【Social initiatives taken in the TOKYO PORTCITY TAKESHIBA】
  • Secures space for accepting stranded commuters in the event of a disaster
  • Provides storage warehouses for emergency supplies
  • Furnishes child-rearing support facilities
  • Develops barrier-free facilities designed to improve convenience of elderly and disabled people
【Environmental initiatives taken in the TOKYO PORTCITY TAKESHIBA】
DBJ Green Building Certification 5 Stars
The property has been certified as Japan’s top-class environmentally and socially conscious building under the “DBJ Green Building Certification,” the certification system established by Development Bank of Japan to certify real estate demonstrating exceptional environmental and social considerations.

Kudanminami 1-chome Project (tentative name)

The “Kudanminami 1-chome Project (tentative name)” is a project to construct a complex of offices and commercial facilities with 17 floors above ground and 3 floors below ground and a total floor area of approximately 68,000 m2. The construction is scheduled to be completed in July 2022. The project will reconstruct the former “Kudan Kaikan,” a historic building registered as a tangible cultural asset, while preserving part of the original building, with the aim of promoting an urban development that places value on history and natural environment.

For an overview of the project, please refer to the following news release.

【Social initiatives taken in the Kudanminami 1-chome Project (tentative name)】
  • Secures space for accepting stranded commuters in the event of a disaster
  • Provides storage warehouses for emergency supplies
  • Develops barrier-free facilities designed to improve convenience of elderly and disabled people
【Environmental initiatives taken in the Kudanminami 1-chome Project (tentative name)】
DBJ Green Building Plan Certification 5 Stars
The project has been certified as a construction plan for Japan’s top-class environmentally and socially conscious building under the “DBJ Green Building Plan Certification,” the certification system established by Development Bank of Japan to certify real estate demonstrating exceptional environmental and social considerations.

Membership Shared Office Business, “Business-Airport;”

The Group operates the membership shared office business, “Business-Airport” in Shibuya, Ebisu, Marunouchi and other centers of business in Tokyo to offer quality workplaces to all businesspersons seeking growth.

For an overview of the business, please visit the following website.

【Social initiatives taken in the Membership Shared Office Business ”Business-Airport”】
  • Provides basic infrastructure for start-ups to pursue business opportunities and growth
  • Provides places enabling business start-ups to exchange information and collaborate with each other as well as interact with major corporations and investors

Support For Start-ups and Co-creation Business

The Group operates its co-creation facilities supporting business start-ups in the greater Shibuya area under the brands of “Plug and Play Shibuya Powered by Tokyu Land Corporation” and “GUILD.” The purpose of the project is to attract start-ups to the greater Shibuya area and facilitate them to create their open innovation capabilities. Additionally, the Group aims to develop an innovation (venture) eco system that underpins growth of quality small-to-medium-sized companies through partnerships with venture capitals and financial assistance for start-ups.

For an overview of the business, please visit the following website.

【Social initiatives taken in the Support For Start-ups and Co-creation Business】
  • Provides basic infrastructure for start-ups to pursue business opportunities and growth
  • Provides places enabling business start-ups to exchange information and collaborate with each other as well as interact with major corporations and investors

Senior Housing Business

The Group operates the “Grancreer” senior housing series offering senior residences (for self-supporting residents) and nursing homes (for residents needing nursing care), with the aim of creating housing that enables senior citizens to enjoy their own lifestyles. Particularly, Grancreer Setagaya Nakamachi and Creer Residence Yokohama Tokaichiba are complexes of senior residences and general condominiums for sale, developed based on the concept of facilitating communications among generations in order to realize the “Intergenerational Interactive City Development.”

For an overview of the business, please visit the following website.

【Social initiatives taken in the Senior Housing Business】
  • Provides barrier-free facilities indispensable for senior citizens
  • Offers 24-hour 365-day nursing care services (nursing home)
  • Offers compound facilities consisting of senior residences for self-supporting residents and nursing homes

About the Green Bond

Tokyu Fudosan Holdings Corporation ("the company") strives to create solutions for social issues through its businesses in order to realize a sustainable society and enhance the Tokyu Fudosan holdings Group's value.
The company has decided to issue a green bond to spread awareness of the company's positive attitude for ESG and actions to a broad base of stakeholders.
The green bond issued by the company obtained the reviews that the green bonds to be issued is based on the framework that is in align with the Green Bond Principles 2018 published by the International Capital Market Association (ICMA) and the Green Bond Guidelines 2017 published by Ministry of the Environment Japan, by the third party reviewer.

Overview

Name Tokyu Fudosan Holdings Corporation 22th Unsecured Corporate Bond (limited inter-bond pari passu rider) (Green Bond)
Alias : Tokyu Fudosan Holdings Corporation Green Bond
Pricing Date January 17, 2020
Issue Date January 23, 2020
Maturity Date January 23, 2025
Term 5-year
Total amount of issue JPY 10,000 million
Interest rate 0.190%
Use of proceeds All funds were fullly allocated to the redemption funds of the commercial paper, for the refinancing funds related to the construction of the "SHIBUYA SOLASTA" and the development of the "ReENE Matsumae Wind Farm".
Bond Rating A (Japan Credit Rating Agency, Ltd.)

Investment Announcements for Tokyu Fudosan Holdings Corporation Green Bond

Please see the following investors that have announced their investments in the Tokyu Fudosan Holdings Corporation Green Bond.
(As of January 17, 2020 / Alphabetical order)

  • Asset Management One Co., Ltd.
  • Daitokyo shinkumi credit corporative
  • KANAGAWA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL CO-OPERATIVES
  • Kanonji Shinkin Bank
  • Naraken Japan Agricultural Co-operatives
  • NUMAZU SHINKIN BANK
  • Meiji Yasuda Life Insurance Company
  • OITA-KEN CREDIT COOPERATIVE
  • OTEC CORPORATION
  • PineBridge Investments Japan Co., Ltd.
  • Sumitomo Mitsui DS Asset Management Company, Limited
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.
  • SUWA SHINKIN BANK
  • THE KAGAWA BANK, LTD.
  • The Kita Osaka Shinkin Bank
  • The Rokinren Bank
  • Tokyo University of Agriculture Educational Corporation
  • Western Asset Management Company Ltd

Allocation Report

On February 14, 2020, the funds raised by this green bond were fully allocated to the redemption funds of the commercial paper, for the refinancing funds related to the construction of the "SHIBUYA SOLASTA" and the development of the "ReENE Matsumae Wind Farm".

Funds raised by this green bond
(After deducting the estimated issuance expenses)
Appropriations Used
JPY 9,952 million Refinancing funds related to the construction of the "SHIBUYA SOLASTA":JPY 8,000 million
Refinancing funds related to the development of the "ReENE Matsumae Wind Farm":JPY 1,952 million

"SHIBUYA SOLASTA" Project

"SHIBUYA SOLASTA" is the office building with 21 floors above ground, 1 below ground, approximately 107 meters high, and a leased area of approximately 27,769㎡. In Mar 2019, we completed the construction of "SHIBUYA SOLASTA", reconstructing the former site areas of 4 buildings in the district including the Shin-Nampeidai Tokyu Building, where the company and TOKYU LAND CORPORATION were headquartered.

Please see the following press release for information on "SHIBUYA SAOLASTA"

Environmental Initiatives of “SHIBUYA SOLASTA”

CASBEE(Comprehensive Assessment System for Built Environment Efficiency)S rank, the best rating
"SHIBUYA SOLASTA" was given an S rank rating, which indicates its high environmental performance, in the evaluation system that comprehensively inspects the environmental performance of buildings based on the "Building Environmental Performance Indication" under the act on promotion of measures to prevent global warming.
DBJ Green Building Certification 5 Stars
"SHIBUYA SOLASTA" was certified as a building with the highest level of environmental and social considerations in Japan under the DBJ Green Building Certification which certifies real estate with outstanding environmental and social considerations by Development Bank of Japan.
Creature Symbiosis Office Certification System(ABINC Certification)
"SHIBUYA SOLASTA" has been recognized for its promotion of green spaces that take biodiversity conservation into consideration, and was given ABINC Certification.
EDO-MIDORI Registration Green Zone(registration system for the planting of the native species)
"SHIBUYA SOLASTA" is registered with the "EDO-MIDORI Registration Green Zone", the system to register native species. This is because "SHIBUYA SOLASTA" is taking steps to restore the environment suited to living things in Tokyo, including insects, birds and other animals, through the planting of plants (native species) that are naturally distributed in Tokyo.

Impact Report as of December 22, 2020

Energy Consumption (GJ)
(Results)  From April 2019 to March 2020 44,597GJ
CO2 Reduction (t-CO2)
(Estimated value)  1,402t-CO2
CO2 reductions per square meter (kg-CO2/㎡)
(Estimated value)  29.9kg-CO2/㎡
Water Consumption(㎥)
(Results)  From April 2019 to March 2020 18,403㎥

"ReENE Matsumae Wind Farm" Project

"ReENE Matsumae Wind Farm" is the wind power plant that was developed in Matsumae-machi, Matsumae-gun, Hokkaido, mainly by Tokyu LAND CORPORATION and started operation on Apr 3, 2019.

Please see the following press release for information on "ReENE Matsumae Wind Farm"

Impact Report as of December 22, 2020

Power generation output (kWh)
(Estimated value)  105,900,000kWh
CO2 Reduction (t-CO2)
(Estimated value)  69,047t-CO2
  • Network Japan WE SUPPORT
  • FTSE4GOOD
  • FTSE Blossom Japan
  • GRESB PUBLIC DISCLOSURE 2017
  • MSCI Japan ESG Select Leaders Index
  • Dow Jones Sustainability Indices