Tokyu Fudosan Holdings issues climate/nature-linked hybrid bonds

Tokyu Fudosan Holdings Corporation has finalized the issuance terms for its JPY 40 billion publicly offered hybrid bonds, categorized as climate/nature-linked bonds. These 37-year subordinated bonds, with an initial interest rate of 2.753%, will fund the repayment of existing deferred interest and callable unsecured subordinated bonds maturing on December 17, 2025. The new bonds are callable from December 16, 2032, and their terms include provisions for interest payment deferral at the company's discretion.

The bonds are structured with specific sustainability performance targets. These include a 46.2% reduction in Scope 3 CO2 emissions by FY2030 (compared to FY2019) and the achievement of 3,000 hectares in cumulative forest conservation by FY2030 under the "Green Connection Project." Failure to meet either target will trigger a donation of 0.05% of the issue amount to environmental conservation organizations.

Daiwa Securities, Nomura Securities, Mizuho Securities, Mitsubishi UFJ Morgan Stanley Securities, and SMBC Nikko Securities are underwriting the issuance, with Sumitomo Mitsui Trust Bank acting as fiscal agent. JCR has assigned an A- rating and a "medium / 50%" equity content to the bonds, which are subordinate to general liabilities but senior to common stock.