September 3, 2021
For Media Release
Tokyu Fudosan Holdings Corporation

Japan's First Policy on Issuance of ESG Bonds for theLong Term, "WE ARE GREEN" Bond Policy Formulated
A Sustainability-Linked Bond to Be Issued
as the First ESG Bond under the Policy
Tokyu Fudosan Holdings Corporation (Headquarters : Shibuya-ku, Tokyo; President: Hironori Nishikawa)
announces that it has formulated the "WE ARE GREEN"* Bond Policy ("the Policy") on the issuance of ESG
bonds** over the long term as a new financing framework under GROUP VISION 2030, the Company's longterm vision. The Policy indicates that the Company will raise the ratio of ESG bonds to outstanding bonds
over the long term. Under the Policy, Tokyu Fudosan Holdings Group("the Group") will promote anddisseminate their ESG initiatives through the continual issuance of ESG bonds. Simultaneously, the Groupwill consistently create investment opportunities for bond investors and strengthen engagement with bondinvestors. Tokyu Fudosan Holdings Corporation ("the Company") is Japan's first company to adopt a policyon the issuance of ESG bonds for the long term.
Under the policy, the Company plans to issue a sustainability-linked bond ("the Issuance") as the first ESG
bond. The Company responded to the Ministry of the Environment's call for examples of 2021 Green Finance
Model Creation Projects . The Issuance was deemed to have model qualities and has been selected as thefirst model example of FY2021.
*"WE ARE GREEN"
The slogan for the Company's long-term vision "GROUP VISION 2030." The slogan expresses the Company's vision for2030 which the Company strives to achieve through the power of "green," the corporate color.

**The ESG bonds under the Policy are as follows:(i) Bonds whose proceeds are used only for the purposes of environmental improvement (purposes related to "green"), forthe purposes of contributing to solutions for social issues (purposes related to society), or for the purposes of both of theabove(ii) Bonds for which the requirements change depending on whether predetermined sustainability/ESG targets are achievedor not (sustainability-linked bonds). The uses of the proceeds are not necessarily limited.

1. Purpose and Background of the Policy
In the Company's long-term vision, "environmental management" is an important challenge that the entire
Company is addressing. We believe that financing through ESG bonds is consistent with environmentalmanagement. We consider that it is necessary for bond investors and other stakeholders to have an accurate
understanding of our company-wide ESG initiatives through our issuance of ESG bonds and to consider
investing after evaluating our essential environmental and social contributions.

Hence, by revealing our policy of continually issuing ESG bonds over the long term, we will provide bondinvestors with comprehensive and continuous understanding of the Group's ESG initiatives, as well asopportunities to invest in ESG bonds in a stable and systematic manner. We will also create opportunities tostrengthen engagement with bond investors through mutual communication by calling for their opinions andsuggestions regarding the Group's ESG initiatives. The Company aims to earn widespread approval of thePolicy from bond investors and achieve sustainable society and growth with bond investors and otherstakeholders.

2. Policy on the Continual Issuance of ESG Bonds for the Long Term
On May 11, 2021, the Company published its long-term vision GROUP VISION 2030 and announced thevalue creation it aims for and its long-term management policy. The Company has made clear six themes(material issues) for value creation, which have been chosen from social issues that we focus on.
The Company will continually issue ESG bonds in line with the themes and will strive to achieve its longterm vision, GROUP VISION 2030.

Our SDGs

The Group has pipelines worth approximately 200 billion yen (as of March 31, 2021), primarily theRenewable Energy Business and the green buildings and senior housing businesses, where the Group willinvest proceeds from ESG bonds in accordance with the themes (material issues) for value creation. We canalso issue sustainability-linked bonds, setting targets related to climate change.
The Group will replace a certain amount of bonds with ESG bonds that will be evaluated by outside ratingagencies, aiming to raise the ratio of ESG bonds to outstanding bonds from over 10%, to 50% or more -by theend of FY2025 and to 70% or more by the end of FY2030.

2ESG bonds issued
TypeDate ofissuance

AmountUse of Proceeds

Green BondJan. 2020

10 billion yen"SHIBUYA SOLASTA" and "ReENE
Matsumae Wind Farm"

Sustainability Bond

Dec. 2020

30 billion yen

The " Kudanminami 1-chome Project(tentative name)" and Senior HousingBusiness etc

Type

Date ofissuance

AmountUse of proceeds

Sustainability loan
(Borrower: Albero GrandeCo., Ltd.,)

Dec. 2020

90 billion yen"TOKYO PORTCITY TAKESHIBA"

Positive impact finance

Apr. 2021

5 billion yen―

Reference: ESG loans

Major projects for which funds are used
"SHIBUYA SOLASTA"

Senior Housing Business

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"ReENE Matsumae Wind Farm""TOKYO PORTCITY TAKESHIBA"

3. Outline of the PolicyName"WE ARE GREEN" Bond Policy
The Company will continually issue ESG bonds for the following purposes:- We will obtain the comprehensive and continual understanding and approval

Purposeof the Group's ESG initiatives from bond investors and other stakeholders.
- We will consistently provide bond investors with opportunities to invest inESG bonds and will expand our financing base through ESG bonds.
The ratio of ESG bonds to the outstanding bonds of the Company
End of FY2025: 50％ or more

TargetEnd of FY2030: 70％ or more
- We will hold "WE ARE GREEN" Bond Policy Meetings (tentative) todisseminate the Group's ESG initiatives and the progress/status of ESG
Deepening engagement

bonds.
- We will collect opinions and suggestions from participants, particularly
investors, and will make the most of them for the Group's ESG initiatives.

UseofESG

bond

proceeds

The Company will use the bond proceeds in line with the themes for value
creation (material issues) set out in the long-term vision "GROUP VISION
2030."
Green bonds, social bonds, sustainability bonds, sustainability-linked bondsTypes of ESG bonds

When ESG bonds are issued, they need to be evaluated by a third-party ratingagency. ESG bonds may be added or eliminated due to changes in principles
that are assumptions on which evaluation is based.

44. Outline of Issuance of Sustainability-Linked Bonds
The Company plans to issue sustainability-linked bonds as the first ESG bonds issued under the Policy.
The following is an outline of the issuance. The Ministry of the Environment and its contractors (Rating andInvestment Information, Inc. and Green Pacific Co., Ltd.) have confirmed that the framework of the Issuancealigned with Green Loan and Sustainability Linked Loan Guidelines 2020 and Sustainability-Linked BondPrinciples 2020 (ICMA). The Company responded to the Ministry of the Environment's call for examples of2021 Green Finance Model Creation Projects. The Issuance was deemed to have model qualities and has
been selected as the first model example of FY2021.
(http://www.env.go.jp/press/109928.html)

A third-party opinion that the Company has received from Japan Credit Rating Agency, Ltd. confirmed thatthe issuance aligned with Green Loan and Sustainability Linked Loan Guidelines 2020 and SustainabilityLinked Bond Principles 2020 (ICMA).

(https://www.jcr.co.jp/greenfinance/)

Name

Tokyu Fudosan Holdings Corporation unsecured bonds No.26(with a pari passu clause) (Sustainability-Linked Bond)

Maturity

10 years

Amount of issuance10.0 billion yen (scheduled)

Date of issuance

Early October at the earliest (scheduled)

SPTs

SPT1:Reducing greenhouse gas emissions by 46.2% in FY2030
SPT2:Achieving net-negative carbon emissions in FY2025(The Company's contributions to reductions of CO2 emissions, including
renewable energy creation, exceeding the Company's CO2 emissions)

If non-acheivement of SPTs is confirmed at the time of evaluation, the Company will
Attributes of bonds after pay the amount below to donors related to the Midori wo Tsunagu Project and similarorganizations that make environmental contributions on the date of redemption.
evaluation
SPT1:0.25% of the amount issued
SPT2:0.25% of the amount issued
Lead underwriters

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Daiwa Securities Co. Ltd., Mizuho
Securities Co., Ltd., Nomura Securities Co., Ltd.

Structuring Agent

Mitsubishi UFJ Morgan Stanley Securities Co, Ltd.

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Targets and SPTs related to climate change in the Company's environmental management
Targets related to climate change

Targets related to climate change
The Group 2025

SPT (ii)

Carbon minus
The Group 's CO2 emissions <Volume of contribution to reduction by creating renewable energy, etc.>

The Group + Supply chain

2030 Achievement of SBT 1.5℃ Target

2050

CO2 emissions reduction by 46.2%

Zero Emissions
Net zero CO2 emissions

SPT(i)■ Midori wo Tsunagu Project
Midori wo Tsunagu Project is an initiative to realize with diverse stakeholders the Tokyu Fudosan HoldingsGroup's environmental vision: We will create value to connect cities and nature, and people with the future.
The Group is pursuing a wide range of "Midori wo Tsunagu (connecting green)" initiatives, including forest
conservation activities working together with our customers, greening activities which propose green
lifestyles, and laboratory activities which utilize the power of greenery for the future.
The Group started forest conservation activities in 2011 and has contributed to conserving a total of 1,849
hectares of forests in collaboration with local governments.
Midori wo Tsunagu Project website(https://tokyu-midori.com/)

This news release is intended to make the issuance of public corporate bonds known to the public,
and no solicitation for investment or similar acts are intended. Forward-looking statements in thispress release are based on information available to the Company at present and certain
assumptions the Company judges to be rational. Those descriptions do not mean that the Company
promises their achievement, and actual results may differ significantly from the descriptions
depending on various factors.

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