Loan for Urban Development Project by Vietnamese Company Indirectly Held by Tokyu Corporation : Supporting Overseas Expansion of Japanese City Planning Business

• Region: Asia
• Environment
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed a loan agreement^*1 amounting to up to approximately USD36 million (JBIC portion) with Phuong Nam 3A-1 Real Estate Business and Investment Joint Stock Company (PN3A-1), a Vietnamese company indirectly held by Tokyu Corporation (Tokyu). The loan, which is for an office building development and management project in Ho Chi Minh City, is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to USD60 million.
   
2. Tokyu operates urban development businesses in Vietnam, Thailand, and Australia. In Vietnam, under the expectations of the province of Binh Duong, Tokyu established a joint venture with BECAMEX IDC CORP., a provincial developer, and has since been engaged in the development of the community, including building transportation infrastructure in Binh Duong New City.
   
3. On the back of its good track record mentioned above, Tokyu is implementing a project to develop and manage an office building in Ho Chi Minh City with its local partners, including R.C. REAL ESTATE DEVELOPMENT AND FINANCE CORPORATION.
   
4. Since the office building is located close to the future Ba Son Station on Line 1 of the Ho Chi Minh City Metro, the first urban railway in the city, the project will support the district redevelopment that is being promoted by the municipality. In addition, as one of the few Grade A office buildings in Ho Chi Minh City, which aims to be a hub for global companies, the building will contribute toward the development of a new international commercial base.
   
5. The office building is a green building that has been awarded the internationally recognized environmental certification LEED^*2 GOLD for its efficient energy management, which uses BEMS (Building Energy Management System)^*3, Low-E double glazing^*4, and other features. In addition, Tokyu and its partners intend to make it the first office building in Ho Chi Minh City to obtain WELL Building Standard^*5 certification by creating a comfortable working space for employees that has an air purification system with filters and a temperature and humidity control system. The building has already been awarded EDGE^*6 certification for its environmental efficiency.
   
6. As Japan's policy-based financial institution, JBIC will continue to financially support the overseas business expansion of Japanese companies.
   

Note

1. *1
   The loan agreement was signed on January 9, 2024.
2. *2
   LEED, or Leadership in Energy and Environmental Design, is an international green building certification program developed and administered by the U.S. Green Building Council with certification credentials provided by the U.S. Green Business Certification Inc.
3. *3
   BEMS is a system that applies IT to control and analyze the entire amount of energy used in a building, thereby optimizing energy use.
4. *4
   Low-E double glazing is a type of energy-efficient glass with special metal coating, which minimizes energy transfers and reduces the heat load in a room.
5. *5
   WELL Building Standard is an international certification platform developed and administered by the U.S. company Delos, which focuses on worker-friendly environments for properties.
6. *6
   EDGE certification is a green building certification system developed and administered by the International Finance Corporation (IFC), a member of the World Bank Group.