Mori Building Co., Ltd.

Records of Issues

Name of bond Mori Building Co., Ltd. 26th unsecured corporate pari-passu bond (green bond), also known as "Mori Building Green Bond"
Maturity term 10 years
Total amount of issue JPY 15 billion
Coupon rate 0.32%
Terms-determination date November 8, 2019
Issue date November 14, 2019
Use of proceeds All funds are for capital expenditures related to "A district" facilities of the Azabudai Hills (Toranomon-Azabudai District Category 1 Urban Redevelopment Project)
Bond rating A+ (Japan Credit Rating Agency, Ltd.)
Underwriters Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Mizuho Securities Co., Ltd.
Nomura Securities Co., Ltd.
Green Bond Structuring Agent Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Investors

  • Japan Credit Rating Agency, Ltd.
  • Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
  • Mizuho Securities Co., Ltd.
  • Nomura Securities Co.,Ltd.
  • Oita-Ken Credit Cooperative
  • The Gamagori Shinkin Bank.
  • JAPAN POST INSURANCE Co.,Ltd.
  • KIRYU SHINKIN BANK
  • The Saitamaken Shinkin Bank
  • THE SHIGA BANK,LTD.
  • Suwa Shinkin Bank
  • The Tsuru Credit Cooperative.
  • Tono Shinkin Bank
  • The Bank of Nagoya, Ltd.
  • Nippon Life Insurance Company
  • The Nishi-Chugoku Shinkin Bank
  • Numazu Shinkin Bank
  • Hamamatsu Iwata Shinkin Bank
  • JA Fukuoka Shinren
  • The Mishima Shinkin Bank
  • Ryobi Shinkumi Bank

Name of bond Mori Building Co., Ltd. second series domestic subordinated unsecured bond with interest-deferral and early-redemption options (green bond)
Total amount of issue JPY 45,000 million
Coupon rate (*1) 1.17% per year
Interest payment date April 19 and October 19 of each year
Closing date October 19, 2020
Maturity date October 19, 2056
Early redemption (*2) Shall be redeemable prior to maturity at the company's discretion on October 19, 2026 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 are for capital expenditures related to "A district" facilities of the Azabudai Hills (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 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Mizuho Securities Co., Ltd.
SMBC Nikko Securities Inc.
Goldman Sachs Japan Co., Ltd.
Green Bond Structuring Agent Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

(*1) Fixed rate from the day immediately following October 19, 2020 until October 19, 2026. 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 22.5 billion yen from the end of March 2020.

List of investors

The bond has received 111 investment proposals from investors (as of 13 October, 2020), the largest number in the history of Japan ESG bond* issuances in Japan.
* "Japan ESG bond" is a generic term used Japan for green bonds (environmental bonds), social bonds (social-contribution bonds), and sustainability bonds (bonds with both environmental and social-contribution features).

  • Japan Credit Rating Agency, Ltd.
  • Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
  • Mizuho Securities Co., Ltd.
  • SMBC Nikko Securities Inc.
  • GOLDMAN SACHS JAPAN CO., LTD.
  • The Aichiken iryo Credit Cooperative
  • The Aichikenchuo Credit Cooperative
  • Aozora Bank, Ltd.
  • Akita Shinkin Bank
  • Asset Management One Co., Ltd.
  • Anan Shinkin Bank
  • Alps Chuo Shinkin Bank
  • The Awaji Shinkin Bank
  • THE IIDA SHINKIN BANK
  • The Iizuka Shinkin Bank
  • JA Ise
  • Ichinoseki Shinkin Bank
  • IBARAKI Prefectural Credit Federations of Agricultural Cooperatives
  • Iwateken Ishi Shinkumi Bank
  • JA BANK IWATE
  • Ueda Shinkin Bank
  • Ugo Shinkin Bank
  • THE OSAKA CITY SHINKIN BANK
  • Osaka Shoko Shinkin Bank
  • Osaka Prefectural Credit Federation of Agricultural Co-operatives
  • Okayama Shinkin Bank
  • KANAGAWAKENSHINREN.
  • JA-kanagawaseisho
  • THE KAWAGUCHI SHINKIN BANK
  • The Kita Osaka Shinkin Bank
  • The Kita-Nippon Bank, Ltd.
  • Kitami Shinkin Bank
  • Gifu Shoko Shinkumi Bank
  • The Gifu Shinkin Bank
  • KIRYU SHINKIN BANK
  • Kesennuma Shinkin Bank
  • Kobeshi Shokuin Shinkumi Bank
  • JA-Bank SAGA
  • Saga Higashi Shinkumi Bank
  • Sapporo Chuo Shinkumi Bank
  • Shichitou Shinkumi Bank
  • Shibata Shinkin Bank
  • Shimane Shinkin Bank
  • Public Corporation for Housing Improvement and Development
  • The Sugamo Shinkin Bank
  • SUMITOMO LIFE INSURANCE COMPANY
  • General incorporated foundation Japan Petroleum Energy Center
  • Japan Fisheries Credit Foundation Association
  • Soka University
  • THE TAIKO BANK,LTD.
  • Taiyo Life Insurance Company
  • Daiwa Asset Management Co. Ltd.
  • Takaoka Shinkin Bank
  • Takamatsu Shinkin Bank
  • JA TAKIGUN
  • Tajima Shinkin Bank
  • Tanyo Shinkin Bank
  • The Chunichi Shinkin Bank
  • Choshi Shoko Shinkumi Bank
  • Tsuruoka Shinkin Bank
  • DMW Corporation Co., Ltd.
  • The Toa Reinsurance Company, Ltd.
  • THE TOKYO HIGASHI SHINKIN BANK
  • Toshun Shinkin Bank
  • The Tono Shinkin Bank
  • Tokushima Shinkin Bank
  • Toda Finance Co., Ltd.
  • The Bank of Toyama, Ltd.
  • Toyamaken Ishi Shinkumi Bank
  • Toyamaken Shinkumi Bank
  • Toyota Shinkin Bank
  • Toyohashi Shoko Shinkumi Bank
  • Nagasakiken Ishi Shinkumi Bank
  • Naganokenshinren
  • The Nagano-ken Shinkumi Bank
  • Nakanogou Credit Cooperative
  • Nagahama Shinkin Bank
  • The Nanto Bank,Ltd.
  • Niigataken Shinkumi Bank
  • Niigata Shinkin Bank
  • Nishi-Chugoku Shinkin Bank
  • Nishihyogo Shinkin Bank
  • General incorporated foundation The Building Center of Japan
  • Development Bank of Japan Inc.
  • THE HANNO SHINKIN BANK
  • Higashi Yamaguchi Shinkin Bank
  • Bisai Shinkin Bank
  • Hyogo Shinkin Bank
  • Hirakata Shinkin Bank
  • JF Bank Federation Hiroshima
  • Fukuoka Prefecture Doctor's Credit union
  • JA Fukuoka Shinren
  • Fukuoka Hibiki Shinkin Bank
  • Fukuchi Town
  • Fukoku Mutual Life Insurance Company
  • Hokuriku Labour Bank
  • Mainichi Shinkumi Bank
  • Maki Shinkumi Bank
  • JA-Mienaka(JA Matsusaka)
  • Matsumoto Shinkin Bank
  • Manulife Investment Management (Japan) Limited
  • Maruhachi Shinkumi Bank
  • JA Mie Shinren
  • JA-Mienaka(JA Mie Chuo)
  • The Mishima Shinkin Bank
  • Mizusawa Shinkin Bank
  • Sumitomo Mitsui DS Asset Management Company, Limited
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.
  • Midori Life Insurance Co., Ltd.
  • Local Employee Mutual Union Miyagi
  • Miyako Shinkin Bank
  • The Miyazaki Taiyo Bank, Ltd.
  • Meiji Gakuin University
  • Meiji Yasuda Life Insurance Company
  • MEISHO UNYU Co.,Ltd.
  • Morioka Shinkin Bank

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 Azabudai Hills (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.

(*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 25 billion yen from the end of March 2022.

List of investors

The bond has received 78 investment proposals from investors (as of 4 October, 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
  • Mienaka Agricultural Cooperative
  • Mie Prefecture credit federation of agricultural cooperatives
  • 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
  • SAGAHIGASHI SHINYOUKUMIAI
  • SAGA PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL COOPERATIVES
  • 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

Allocation Reports and Impact Reports

The status of allocation of funds raised through the green bonds is as follows (as of March 31, 2023).

  26th corporate bond Second series of domestic subordinated unsecured bond with interest-deferral and early-redemption options Third series of domestic subordinated unsecured bond with interest-deferral and early-redemption options
Amount procured
(net of estimated costs of issuance)
JPY 14,915 million JPY 44,618 million JPY 49,578 million
Use of proceeds Capital expenditures related to A District facilities (the acquisition of a reserved floor) of the Azabudai Hills (Toranomon-Azabudai District Category 1 Urban Redevelopment Project)
Amount allocated JPY 14,915 million JPY 44,618 million JPY 49,578 million
Amount unallocated JPY 0 JPY 0 JPY 0
Share of financing 100% 100% 100%

Impact reports will be compiled and disclosed after the completion of the project for which the funds are being used.

External Review

Regarding the third series of subordinated bonds (green bonds), we have obtained an external review from Sustainalytics, a third-party evaluation organization, for reporting on the allocation of funds as set forth in the green bond framework and indicators related to environmental improvement effects.

No. External review Acquisition date
1 External review by Sustainalytics April 2023

*Although it was referred to as the "Annual Review" for the period from April to August 2023, please note that the title has been revised to "External Review" following publication.

Azabudai Hills

Innovative Multi-purpose Development will Create a City-within-a-city Full of Greenery

The concept of the Azabudai Hills is a "MODERN URBAN VILLAGE"; it aims to be a huge open space at the heart of Tokyo filled with lush greenery that will bring people closer together and build a new community. The project will seamlessly weave offices, residences, a hotel, an international school, retail shops, restaurants and cultural facilities into the fabric of everyday life, encompassing work, learning, recreation, interaction and relaxation. This visionary project also aims to create "a city within a city", which will constitute the "Hills of the future" by utilizing past experiences in the Hills-series of redevelopments. After spending 30 years on discussing and planning this project, its construction finally began in August 2019, and it will open in November 2023 (planned).

Certifications

  • LEED ND: Obtained the Platinum certification, the highest level in precertification.
  • LEED BD+C (CS) (Building Design and Construction: Core and Shell): Obtained the Platinum certification, the highest level in precertification, for redevelopment area A (office/retail portion).
  • WELL: Obtained precertification for redevelopment area A (office/retail portion). The highest Platinum certification is expected after completion of construction.
  • CASBEE (New Construction): S is expected to be certified.
  • CASBEE: Wellnes Office is expected to be certified.

Please check Major Project: Azabudai Hills for more details.