Tokyu Fudosan to issue JPY 40 bn climate/nature-linked hybrid bonds

Tokyu Fudosan Holdings Corporation announced plans to issue publicly offered climate/nature-linked hybrid bonds totaling JPY 40 billion, with a scheduled issuance in December 2025. The bonds, maturing 37 years after payment, are designed to support the company's environmental commitments outlined in its long-term management policy and medium-term management plan 2030, focusing on decarbonization and biodiversity conservation.

The bonds feature two key performance indicators: a reduction in Scope 3 CO2 emissions (Categories 1, 2, and 11) compared to fiscal year 2019, and the cumulative total area of forests conserved in the Green Connection Project. Specific sustainability performance targets include a 46.2% reduction in Scope 3 CO2 emissions by fiscal year 2030 (compared to fiscal year 2019) and achieving a cumulative forest conservation area of 3,000 hectares by fiscal year 2030. Failure to meet a target will result in a donation equivalent to 0.05% of the issue amount.

This issuance follows the early redemption of the company's first publicly offered hybrid bond from fiscal year 2020 on December 17, 2025. The new bonds are expected to receive 50% equity recognition from Japan Credit Rating Agency, Ltd. Nomura Securities Co., Ltd. and Daiwa Securities Co. Ltd. are serving as structuring agents.