JTOWER, JA Mitsui Leasing and Mitsubishi HC Capital decided to enter into the financing contract for carve-out of telecommunications towers ～Total 124.8 billion yen financing for acquisition of up to 6,209 telecommunications towers completed～

We are pleased to announce that JTOWER Inc. (Representative Director: Atsushi Tanaka, Head Office: Minato-ku, Tokyo), a company engaged in Infra-Sharing business, has decided to enter into a financing contract (the “financing contract”) between its subsidiary and JA Mitsui Leasing, Ltd.*¹ (“JA Mitsui Leasing”) and Mitsubishi HC Capital Corporation*² (Mitsubishi HC Capital).

With the financing contract, we will complete all the financing required for the acquisition of up to 6,209 telecommunication towers, from NTT DOCOMO, Inc.*³ (“DOCOMO”), Nippon Telegraph and Telephone West Corporation*⁴ (“NTT West”) and Nippon Telegraph and Telephone East Corporation*⁵ (“NTT East”).

JTOWER concluded the master transaction agreement to acquire 71 telecommunication towers from NTT West in July 2021, 136 towers from NTT East in March 2022, and 6,002 towers from DOCOMO in November 2022. We have already started transferring telecommunication towers which meet certain conditions from DOCOMO, and as of the end of December 2022, 546 towers were transferred.

With the signing of this financing contract, we will be able to secure funds necessary for the acquisition of telecommunication towers from NTT West and NTT East, in addition to funds equivalent to the acquisition of the remaining approximately 10% of the telecommunication towers from DOCOMO. JTOWER will further accelerate the transfer and strengthen its efforts to attract new tenants, including other mobile network operators.

Infra-Sharing of existing telecommunication towers is an effective measure that leads to efficient use of infrastructure and reduces environmental impact. JTOWER will continue to promote tower carve-outs (acquisition) from mobile network operators, and will also build new towers for sharing in rural and suburban areas.

JTOWER will contribute to both the development of efficient network infrastructure such as 5G and the realization of a sustainable society through outdoor tower sharing, based on its vision of, “Infra-Sharing Services from Japan Lead the World”.

【Outline of the Financing】

The total amount of the financing is approximately 17.4 billion yen and consists of debt financing from JA Mitsui Leasing and Mitsubishi HC Capital and preferred equity financing (mezzanine financing). Both financing are for the purpose of raising funds in JTOWER Infrastructure2 Inc., the SPC (special-purpose company) established in August 2022 as a subsidiary of JTOWER.

 
【Outline of the Financing Structure】

*¹：JA Mitsui Leasing, Ltd.（President & CEO：Keito Shimbu, Place of HQ：Chuo-ku, Tokyo）
*²：Mitsubishi HC Capital Inc.（Representative Director, President & CEO：Takahiro Yanai, Place of HQ：Chiyoda-ku, Tokyo）
*³：NTT DOCOMO, Inc.（President and Chief Executive Officer：Motoyuki Ii, Place of HQ：Chiyoda-ku, Tokyo）
*⁴：Nippon Telegraph and Telephone West Corporation（President, Executive Officer：Masaaki Moribayashi, Place of HQ：Miyakojima-ku, Osaka）
*⁵：Nippon Telegraph and Telephone East Corporation（President：Naoki Shibutani, Place of HQ：Shinjuku-ku, Tokyo）