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Bloomberg
A Japanese real estate developer is planning to sell a bond whose coupon increases if it misses environmental targets, in the first issuance of its kind in the nation.
Hulic Co plans to offer 10 billion yen ($94 million) of 10-year so-called sustainability-linked bonds in
October, according to a filing on Tuesday. If the company isn’t able to meet either of its two green goals by 2025, the coupon on the debt will increase by 10 basis points.
One of its goals is to use funds raised to develop mega solar systems so that all power use at buildings of its headquarters and subsidiaries is sourced from renewable energy. The other is to build a 12-story, fire-resistant commercial facility in Tokyo’s Ginza district made with wood grown in Japan.