Tokyu Fudosan to issue climate/nature-linked hybrid bonds

Tokyu Fudosan Holdings Corporation announced its intention to issue JPY 40 billion in public hybrid bonds, structured as Climate/Nature-Linked Bonds. This financing aligns with the company's "Medium-Term Management Plan 2030," focusing on "Decarbonized society," "Recycling-based society," and "Biodiversity conservation." The bonds, maturing in 37 years with early redemption possible after 7 years, aim to maintain the company's financial base after the pre-maturity redemption of its first hybrid bond series from fiscal year 2020.

The bonds incorporate two key performance indicators (KPIs): a 46.2% reduction in Scope 3 CO2 emissions (Categories 1, 2, and 11) by fiscal year 2030 (compared to a fiscal year 2019 baseline), and the achievement of 3,000 hectares of cumulative forest conservation in the "Green Connection Project" by fiscal year 2030. Failure to meet a specified target will result in a donation equivalent to 0.05% of the issue amount. Nomura Securities and Daiwa Securities are serving as structuring agents, with JCR providing an external evaluation.