Tokyo, September 12, 2022 -- Mori Building Co., Ltd., Japan's leading urban landscape developer, announced that it submitted an amended shelf registration statement to the Director-General of the Kanto Local Finance Bureau in connection with the planned issuance of hybrid bonds in a public offering. The entire issuance will comprise green bonds to be used by Mori Building as the developer to acquire reserved floor in the A District Tower of the Toranomon-Azabudai Project (Toranomon-Azabudai District Category 1 Urban Redevelopment Project).
The Toranomon-Azabudai Project is being created as a "Modern Urban Village" centered on a huge open space in the heart of Tokyo, filled with greenery and designed to bring people together in a new community. It will encompass a vast area of about 8.1 hectares, built around a central square surrounded by lush greenery. As the most modern Hills-branded property developed by Mori Building, this "Hills of the future" project will closely integrate diverse urban functions including offices, residences, a hotel, an international school and both commercial and cultural facilities. On April 21, the frame of the A District Tower was completed and construction is progressing smoothly toward completion in 2023.
Mori Building will issue the bonds to strengthen its financial base and flexibility. The entire amount will be issued as green bonds, the latest example of Mori Building's long-standing contributions to the global environment through responsible urban development.
The bonds will be a form of hybrid financing with features similar to those of equity, such as voluntary deferral of interest, super-long-term maturity and subordination in liquidation, bankruptcy proceedings, etc. As such, an equity rating for 50% of the amount financed is expected to be received from Japan Credit Rating Agency, Ltd. All proceeds from the bonds will be used for the acquisition of reserved floor in the A District Tower.
The tower has received top-level Platinum precertification in the Building Design and Construction/Core and Shell Development category of the Leadership in Energy and Environmental Design (LEED) program. LEED, which is managed by the U.S. Green Building Council, is an international environmental-performance certification program for newly built environmentally friendly and efficient green buildings.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. has been appointed as the green bond structuring agent. An independent assessment of the suitability of the green-bond framework has been obtained from Sustainalytics, a third-party evaluation agency.
Mizuho Securities Co., Ltd. will serve as the lead managing underwriter and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Daiwa Securities Co. Ltd., Nomura Securities Co., Ltd. and Goldman Sachs Japan Co., Ltd. will jointly serve as underwriters. The exact issue amount and other conditions will be determined in October at the earliest, subject to demand conditions.