#Japan #Chiyoda #Shuto_Expressway #Daiwa_Securities #Social_Bond

Shuto Expressway Corporation Introduces Social Bonds

In an exciting development for corporate investors, Shuto Expressway Corporation (Shutoko), headquartered in Chiyoda, Tokyo, is collaborating with Daiwa Securities Co., Ltd. to issue a new series of social bonds. These bonds are designed specifically for corporate entities looking to invest and support sustainable infrastructure projects aimed at solving social challenges.

Bond Details and Purchase Information

The bonds will be made available at Daiwa Securities branches across the nation, providing a platform for corporations to invest and publicly express their commitment to these projects. Interested investors can make their investment declaration on various platforms after purchasing, indicating their support for the significant initiatives that these bonds will finance. The names of participating corporations will be published on Shutoko's official website,
showcasing their endorsement of the corporation's values and its mission in promoting infrastructure development.

Organizational Mission and Vision

Established on October 1, 2005, Shutoko was created under the government’s direction to hand over functions typically managed by public sectors to private organizations. Its primary goal is to enhance the efficiency of building, maintaining, and operating the expressway system, thereby facilitating smoother road traffic to contribute to the economic growth and quality of life for citizens. The company's guiding principles emphasize customer satisfaction, symbiosis with local communities, social responsibility, autonomous management, and creating a vibrant work environment.

Commitment to Sustainability

Shutoko is also committed to sustainability, strategically formulating a value creation story aimed at ensuring that it remains a trusted entity amidst societal changes. This commitment is expressed in its vision for a thriving urban area that evolves sustainably over the next century. Various initiatives under its sustainability goals include the promotion of biodiversity as part of its environmental efforts, exemplified by the “Ohashi Sato no Mori,” a green space designed to replicate the natural landscapes of the Meguro River.

The company is set to receive the highest accolades within the fifth Green Infrastructure Awards hosted by the Ministry of Land, Infrastructure, Transport and Tourism in 2024, making it the first expressway company to achieve this recognition.

Financing Social Projects

As these social bonds are issued to raise funds for projects that tackle various societal challenges, they align with principles defined by the International Capital Market Association (ICMA). The funds collected through this bond will be allocated to eligible projects within Shutoko’s operations, including the construction of new expressways, repair and disaster recovery efforts, and ensuring safety and resilience against potential disasters, such as earthquakes and severe weather events.

These projects also address pressing community needs, enhancing travel efficiency, improving safety, and promoting better environmental conditions, all contributing toward the United Nations' Sustainable Development Goals (SDGs).

Upcoming Bond Issuance Plans

Shutoko plans to issue bonds worth 25 billion yen in October 2025. The detailed framework of the issuance is set as follows:

• - Issuing Entity: Shuto Expressway Corporation
• - Issue Number: 36th
• - Value: 25 billion yen
• - Schedule for Setting Terms: Week of October 13, 2025
• - Payment Date: Expected by late October 2025
• - Lead Managing Companies: Mizuho Securities, Daiwa Securities, SMBC Nikko Securities
• - Ratings: AA+ by R&I, AAA by JCR, A1 by Moody’s, equivalent to Japanese government bonds.

This initiative represents not only a financial investment for corporate investors but also a significant step towards collaborative efforts in building a sustainable future. For more information regarding the bond issuance and purchasing processes, please contact Daiwa Securities directly.

Investing and Transaction Considerations

Potential investors should understand that engaging in these transactions comes with associated costs, risks, and market fluctuations that may lead to financial losses. Moreover, different funds and courses will incur varying fees and exposure to risk, emphasizing the importance of thorough review before proceeding.

Shuto Expressway Corporation’s social bonds not only pave the way for infrastructure investment but also demonstrate a collective step toward addressing vital societal needs—building a better tomorrow, one investment at a time.