JTOWER Co., Ltd.
JTOWER Decided to Execute Financing Contract for Telecommunications Tower Carve-Out from NTT DoCoMo
-Total financing of approx. 107.4 billion yen, full-scale transfer of telecommunications towers-
JTOWER Inc. (Headquarters: Minato-ku, Tokyo, President: Atsushi Tanaka, hereinafter referred to as JTOWER) is a communication tower from NTT Docomo, Inc. (Headquarters: Chiyoda-ku, Tokyo, President: Motoyuki Ii, hereinafter referred to as DoCoMo). We would like to inform you that we have decided to conclude a contract (hereinafter referred to as the “finance-related agreement”) related to the necessary financing (hereinafter referred to as the “finance”) for the carve-out project (hereinafter referred to as the “project”). In March 2022, JTOWER concluded a basic agreement with DOCOMO regarding the acquisition of up to 6,002 communication towers owned by DOCOMO and the use of such towers by DOCOMO after acquisition. With the conclusion of this finance-related agreement, we will move forward with the full-scale transfer of steel towers from DoCoMo and promote their use in infrastructure sharing. As a result, we will realize efficiency in capital investment and operating costs for mobile carriers, etc., and promote the early development of networks such as 5G.
Infrastructure sharing of carved-out telecommunication towers leads to effective use of existing infrastructure and is an effective measure to reduce environmental impact. By promoting this project, JTOWER will contribute to the realization of a sustainable society.
■Overview of this financing
This financing totaled approximately 107.4 billion yen, most of which consisted of borrowings from multiple financial institutions (debt financing – 3 companies *1) and preferred investments (mezzanine financing – 4 companies *2). will also be carried out for “JTOWER Infrastructure LLC,” an SPC (special purpose company) established as a subsidiary of JTOWER in April 2022 (*3). In addition, part of this financing is JTOWER’s borrowing from multiple financial institutions (debt financing – 2 companies*4).
In addition, this financing was evaluated by some financial
institutions for its contribution to achieving the SDGs through the promotion of infrastructure sharing, and was used in deciding on financing initiatives.
*1: Mizuho Bank, Ltd., MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation *2: MUFG Bank, Ltd., JA Mitsui Leasing Co., Ltd., Mitsubishi HC Capital Co., Ltd., Sumitomo Mitsui Trust Bank, Limited
*3: Mizuho Securities Co., Ltd. was appointed as a financial advisor for SPC financing.
*4: Mizuho Bank, Ltd., MUFG Bank, Ltd.
■Future developments ~Full-scale transfer of telecommunication towers, strengthening of attracting use to other mobile carriers~
Based on the conclusion of this finance-related agreement, the transfer of the telecommunication towers will be carried out in order starting with the one where the conditions are met, and JTOWER will strengthen the invitation of new usage to telecommunications carriers, etc., including other mobile carriers, for the transferred
telecommunication towers. increase.
JTOWER will continue to promote steel tower carve-outs (purchases) from telecommunications carriers, and will also develop new steel towers for sharing in rural and suburban areas. JTOWER aims to achieve both the development of efficient network infrastructure such as 5G and the realization of a sustainable society through these outdoor tower sharing, based on the vision of “Providing the world’s most advanced infrastructure sharing from Japan.” We will continue to contribute.
[Finance structure]
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