Adopting Sustainable Finance
Mitsubishi Estate Green Bond Issued
The mission of the Mitsubishi Estate Group is to contribute to the creation of a truly meaningful society by building attractive, environmentally sound communities where people can live, work and relax with contentment.
In June 2018, in order to raise funds for the Tokyo Station Tokiwabashi Project currently underway in front of the Nihonbashi exit of Tokyo Station, Mitsubishi Estate issued the Mitsubishi Estate Green Bond, the first in Japan from an integrated real estate company. The Mitsubishi Estate Green Bond was issued based on a framework in accordance with the Green Bond Principles published by the International Capital Market Association (ICMA), and Mitsubishi Estate obtained an opinion on compliance with the principles from a third-party certification institution.
The Mitsubishi Estate Green Bond also obtained the highest GA1 rating in an R&I Green Bond Assessment carried out by Rating and Investment Information, Inc. which evaluates the extent to which proceeds from the issuance of a green bond are used to invest in projects that contribute to solving environmental problems.
|Name||Mitsubishi Estate Co., Ltd. 127th unsecured corporate bonds (Mitsubishi Estate Green Bond)|
|Date of determination of issuance terms||June 20, 2018|
|Date issued||June 26, 2018|
|Maturity date||June 26, 2023|
|Total amount issued||20 billion yen|
|Use of proceeds||All funds will be used to finance the construction of Tower A of the Tokyo Tokiwabashi Project facing Tokyo Station.
|Bond rating||AA- (Rating and Investment Information, Inc.)
A+ (Standard & Poor's Global Ratings Japan)
A2 (Moody's Japan)
The Tokyo Tokiwabashi Project and its Building A have been named as TOKYO TORCH and Tokiwabashi Tower, respectively. Please see the following press release (Japanese only) for details.
Third-Party Ratings Concerning Eligibility
Second party opinion
The bonds were issued based on a framework that followed the Green Bond Principles published by the International Capital Market Association, and the company obtained opinions from a third party certification organization regarding the bond's eligibility as a green bond.
Green bond assessment
The R&I Assessment evaluates the extent to which funds raised through green bonds are invested in business projects that solve environmental projects. This project received the highest rank of GA1 in the Assessment.
Ministry of the Environment issuance model cases
The company filed an application for the bond to be considered as a model case by the Ministry of the Environment for its Models of Green Bond Issuance in 2018. It was selected and has confirmed with the Ministry and its contractors that the bond complies with the Green Bond Guidelines 2017.
Mitsubishi Green Bond Investment Announcements
Please see the following press release for information on investors that have announced their investments in the Mitsubishi Estate Green Bond.
Announcement (3) of the issuance of the Mitsubishi Estate Green Bond to fund the Tower A of the Tokiwabashi District Redevelopment Project in front of Tokyo Station - Terms determined today with an issue amount of 2 billion yen and an interest rate of 0.09% (PDF 270KB) (Japanese only)
Mitsubishi Estate has confirmed that the funds procured from the issue of green bonds to finance the construction of the Tokiwabashi District Redevelopment Project Tower A in front of Tokyo Station have been used in full. The Finance & Accounting Department executive officer in charge of these matters has filed a management assertion regarding the appropriation of these funds.
|Procured Appropriations||Appropriations Used||Appropriations to Be Used|
|19,931 million yen||19,931 million yen||0 million yen|
As of July 17, 2020
Details of the Tokiwabashi District Redevelopment Project
- A large-scale redevelopment project covering a total area of 3.1 hectares, the largest in the vicinity of Tokyo Station. It includes the development of an approximately 390m super high-rise tower that will become a new landmark for the city of Tokyo and a spacious plaza measuring approximately 7,000m2 that will transform the area in front of Tokyo Station, all of which will be developed and equipped in stages. The project is a designated project for the National Strategic Special Zone Program.
- The project will be carried out in stages over a 10-year period while maintaining and updating vital infrastructure functions including sewage pumps and transformer substations within the district.
- As a designated project for the National Strategic Special Zone Program, this project will be located in the middle of the Tokyo's chief business center and is positioned to be known as the Tokyo Global Financial Center. To that end it is intended to contribute to urban redevelopment in the following ways:
1. Renewal of urban infrastructure, creation of a pedestrian network, preparation of a plaza, etc.
2. Creation of a hub to enhance international competitiveness (finance/business exchange and urban tourism).
3. Creation of superior disaster management and an eco-conscious urban environment.
A rendering of TOKYO TORCH overall at the time of its opening as seen from the Marunouchi side of JR Tokyo Station
Please see the following press release for a summary of the project.
First ever green bond issued in Japan by a comprehensive real estate company
Announcement of the issuance of the Mitsubishi Estate Group Green Bond to be used to fund the construction of Tower A of the Tokiwabashi District
Redevelopment Project in front of Tokyo Station (PDF 743KB) (Japanese only)
DBJ Green Building Certification
Tower A for the Tokiwabashi District Redevelopment Project in front of Tokyo Station has been awarded the Development Bank of Japan (DBJ) Green Building certification as a building that exhibits the highest level of "environmental and social awareness" in Japan. (Certification obtained March 29, 2019.)
Use of Sustainability Linked Loan
Mitsubishi Estate concluded the Japanese real estate industry's first loan agreement based on a sustainability linked loan (SLL) with The Norinchukin Bank.
Mitsubishi Estate established the Mitsubishi Estate Group Sustainability Vision 2050 with the aim of realizing a sustainable society and formulated Mitsubishi Estate Group 2030 Goals for SDGs in the Long-Term Management Plan 2030 as the milestones that define the themes and actions in working to achieve this vision. The Group has set out and works toward concrete numerical targets related to climate change. The vision and initiatives were evaluated as contributing to solving climate change issues, which The Norinchukin Bank considers important, leading to the conclusion of the loan.
An SLL aims to support environmentally and socially sustainable business activities and growth by establishing sustainability performance targets (SPTs) based on the borrower's management strategy and linking the loan terms to the achievement of the SPTs. The loan established the Group's targets on CO2 emissions (target for 2030: 30% reduction from 2017) and renewable electricity rate (target for 2030: 25%), which were set out in Mitsubishi Estate Group 2030 Goals for SDGs as the SPTs. Mitsubishi Estate plans to use a portion of the funds obtained from the loan for initiatives contributing to expanding the introduction of renewable electricity and reducing CO2.
On conclusion of this loan agreement, a third party opinion on the alignment of the loan with the SLL Principles and the appropriateness of the SPTs established was obtained from Japan Credit Rating Agency, Ltd.
Overview of the Loan
- Execution date: May 29, 2020
- Loan period: 11 years and three months
- Amount: 11.5 billion yen
- Application of funds: Long-term working funds