Tokyo, October 4, 2022 -- Mori Building Co., Ltd., Japan's leading urban landscape developer, announced today the issuance terms and conditions of its hybrid (subordinated) bond for public offering. The green bond purposed to finance the company's acquisition of a reserved floor in the A District Tower of the Toranomon-Azabudai Project (Toranomon-Azabudai District Category 1 Urban Redevelopment Project), as announced on September 12, 2022, has received 78 preliminary bids from investors as of today.

Name of bond Mori Building Co., Ltd. third series domestic subordinated unsecured bond with interest-deferral and early-redemption options (green bond)
Total amount of issue JPY 50,000 million
Coupon rate *1 1.36% per year
Interest payment date April 11 and October 11 of each year
Closing date October 11, 2022
Maturity date October 11, 2057
Early redemption *2 Shall be redeemable prior to maturity at the company's discretion on October 11, 2027 and each interest payment date thereafter
Clauses on interest payment The company may, at its discretion, defer payment of all or part of the interest
Payment priority The payment priority of this bond is subordinated to general debt of the company and prior to common stock
Offering method Public offering in Japan (mainly for institutional investors)
Use of proceeds All funds will be used for the acquisition of a reserved floor in the A District Tower of the Toranomon-Azabudai Project (Toranomon-Azabudai District Category 1 Urban Redevelopment Project)
Bond rating A- (Japan Credit Rating Agency, Ltd.)
Equity credit evaluation Middle, 50% (Japan Credit Rating Agency, Ltd.)
Underwriters Mizuho Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Daiwa Securities Co. Ltd.
Nomura Securities Co., Ltd.
Goldman Sachs Japan Co., Ltd.
Green bond structuring agent Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Second-party opinion on green bond framework Sustainalytics (independent provider of ESG evaluations)

*1 Fixed rate from the day immediately following October 11, 2022 until October 11, 2027. Floating rate with step-up thereafter.
*2 In the event of early redemption of the bond, the company expects to refinance the bond with instruments recognized by Japan Credit Rating Agency, Inc. as having equal or superior capitalization. However, if either of the following conditions is met, the company may forego refinancing with an instrument certified as having equal or higher capitalization:
　1) Consolidated balance sheet's debt-to-equity ratio is less than 3.0 times.
　2) Shareholder equity in consolidated balance sheet increases at least JPY 25 billion from the end of March 2022.

Note: The purpose of this notice is to officially announce the issuance of the subordinated bond through a public offering, not to solicitate investments or similar activities.

List of investors (as of October 4, 2022)

  • AICHI POLICE CREDIT UNION
  • Akita Shinkin Bank
  • Aozora Bank, Ltd.
  • Asahi Mutual Life Insurance Company
  • ASAHISHIMBUN CREDIT COOPERATIVE
  • Asset Management One Co., Ltd.
  • Chiba Shinkin Bank
  • Choshi Shoko Shinkumi Bank
  • DAIDO LIFE INSURANCE COMPANY
  • Daiwa Asset Management Co. Ltd.
  • Danyo Shinkumi Bank
  • Development Bank of Japan Inc.
  • FUKOKU MUTUAL LIFE INSURANCE COMPANY
  • Gifu Shoko Shinkumi Bank
  • Gunmaken Shinkumi Bank
  • Hanno-Shinkin Bank
  • Hokuriku Labour Bank
  • HYOGO SHINKIN BANK
  • Ichinoseki Shinkin Bank
  • JAPAN SEAFARERS RELIEF ASSOCIATION
  • KANAGAWA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL CO-OPERATIVES
  • KITAMI SHINKIN BANK
  • Kobeshi Shokuin Shinkumi Bank
  • Kyoei Community Bank
  • Manulife Investment Management (Japan) Limited
  • Maruhachi Credit Cooperative
  • Matsumoto Shinkin Bank
  • Mie Prefecture credit federation of agricultural cooperatives
  • Mienaka Agricultural Cooperative
  • Mitsui Sumitomo Insurance Company, Limited
  • Momiji Bank,Ltd.
  • Murakami Shinkin Bank
  • Musashi Academy of the Nezu Foundation
  • Nagahama Shinkin Bank
  • NAGASAKI MITSUBISHI CREDIT UNION
  • Naraken Japan Agricultural Co-operatives
  • Nishihyogo Shinkin Bank
  • Nissay Asset Management Corporation
  • Osaka Doctor′s Credit Union
  • Osaka Prefectural Credit Federation of Agricultural
  • Osaka Shoko Shinkin Bank
  • SAGA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL COOPERATIVES
  • SAGAHIGASHI SHINYOUKUMIAI
  • SBI Insurance Co., Ltd.
  • shimane credit guarantee corporation
  • SHIMANE SHINKIN BANK
  • SHOWA SHINKIN BANK
  • SOKA University
  • Sompo Asset Management Co., Ltd.
  • Tagawa Shinkin Bank
  • Takaoka Shinkin Bank
  • Tama Art University
  • The Aichi Bank, Ltd.
  • The Awa Bank, Ltd.
  • The Bank of Toyama, Ltd.
  • THE EIWA SHINKIN BANK
  • The Gamagori Shinkin Bank
  • The Hokusei Shinkin Bank
  • The Kimitsu Credit Cooperative
  • The Kyoto Chuo Shinkin Bank
  • The Miyazaki Taiyo Bank, Ltd.
  • THE MIZUSAWA SHINKIN BANK
  • THE NAGANO-KEN SHINKUMI BANK
  • The Osaka-kyoei Credit Cooperative
  • THE SEISHIN SHINKIN BANK
  • THE SUGAMO SHINKIN BANK
  • The Takinogawa Shinkin Bank
  • THE TOKYO HIGASHI SHINKIN BANK
  • THE TOYOTA SHINKIN BANK
  • The Yokohama Shinkin Bank
  • TOKOHA UNIV.
  • TOKUSHIMA SHINKIN BANK
  • TONO SHINKIN BANK
  • TSURU Educational Foundation
  • TSURUOKA SHINKIN BANK
  • YAMAGUCHI PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL CO-OPERATIVES
  • Yokohama Agricultural Cooperative
  • Zenkokugyogyoushinyoukikinkyoukai
Please refer to the PDF file for more information.