#Japan #Tokyo #Sustainability Bonds #Daiwa Securities #UR Urban Renaissance

Daiwa Securities to Facilitate Investment in Social Bonds

In a significant initiative aimed at social responsibility and urban development, Daiwa Securities Co., headquartered in Chiyoda, Tokyo, has announced that it will sponsor the sale of social and sustainability bonds issued by the Urban Renaissance Agency (UR Urban Renaissance). These bonds are set to be available for purchase through Daiwa Securities branches across the country during the first half of the fiscal year 2025.

Understanding the Bonds

The social bonds and sustainability bonds offered by UR Urban Renaissance will enable corporate investors nationwide to not only make financial contributions but to also publicly express their support for the agency's mission. This public endorsement, known as an investment declaration, acknowledges the significance of the projects funded by these bonds. Furthermore, the names of investors and links to their company websites will be published on the UR Urban Renaissance's official website, promoting transparency and accountability.

UR Urban Renaissance Agency's Mission

UR Urban Renaissance is an independent administrative institution dedicated to urban regeneration, rental housing development, and disaster response support. The agency’s mission is articulated through its philosophy of “producing beautiful, safe, and comfortable cities where people can shine.” For nearly 70 years, UR Urban Renaissance has actively contributed to national city planning and housing development.

Urban Regeneration Efforts

UR Urban Renaissance is involved in numerous urban regeneration projects aimed at enhancing urban safety and attractiveness through comprehensive planning and redevelopment initiatives. A remarkable example is the Umekita Project, which is located near Osaka Station. This ambitious collaboration among industry, academia, and the government aims to blend 'green' and 'innovation' to create a vibrant urban area. The first phase of the Umekita Project is set to open in September 2024, marking a significant milestone in urban revitalization.

Diverse Housing Strategies

In the realm of rental housing, UR Urban Renaissance promotes diverse uses of UR rental properties according to local and community characteristics. The goal is to create neighborhoods where a wide range of generations can live securely and vibrantly. In many cases, particularly where UR rental housing has been in operation for over 40 years, the agency pushes for redevelopment initiatives to rejuvenate these communities. An exemplary case of this is the Nouvel Akabane-dai project in Kita City, Tokyo, where redevelopment has improved asset quality while also introducing essential community functions like child-rearing support facilities.

Disaster Response Initiatives

In response to the potential for nationwide disasters, UR Urban Renaissance remains committed to disaster preparedness and support. The agency actively engages in comprehensive responses to various calamities, including earthquakes and heavy rains. Following the Noto Peninsula earthquake in January 2024, UR Urban Renaissance quickly mobilized to establish an initial response framework, contributing significantly to both immediate recovery efforts and the creation of long-term revitalization plans.

Commitment to Sustainability

In alignment with global sustainability objectives, UR Urban Renaissance works hand in hand with local governments and private corporations to address pressing social issues through urban and community development initiatives. The agency’s efforts have earned it third-party evaluations for social finance in August 2020 and sustainability finance in March 2023 from the Rating and Investment Information, Inc. (R&I), further empowering its funding strategies.

Financial Framework and Future Outlook

The funds raised from these bonds are positioned as social bonds that tackle social issues. In cases where the funds will be channeled into green projects, they will be categorized as sustainability bonds, with the entirety of the raised capital allocated specifically for urban regeneration and rental housing projects.

The underwriting of the financial bonds in the first half of financial year 2025 will involve participation from major securities firms, including SMBC Nikko Securities, Mizuho Securities, and Mitsubishi UFJ Morgan Stanley Securities. Information regarding funding specifics for the first quarter of financial year 2025, including potential adjustments based on funding needs, is anticipated to be disclosed shortly.

For further inquiries and detailed information regarding investment opportunities, potential investors can reach out to Daiwa Securities' branches nationwide, ensuring that they are well-informed before making investment decisions.

For additional details and photos, visit the UR Urban Renaissance's website: UR Urban Renaissance