Special Report: Listed Infrastructure Funds
We provide full support for the formation and listing of infrastructure funds using the vast knowledge and experience that we have amassed to date.
On April 30, 2015, the Tokyo Stock Exchange established an infrastructure fund market, and the very first issue was listed on June 2, 2016. Since then, second and third issues have been listed so that there are now three listed infrastructure funds. Furthermore, under the fiscal year 2017 tax revisions, the requisite acquisition period for investment corporations (tōshi hōjin) to invest in renewable energy generators and be approved conduit tax treatment (for 20 years) has been extended three years from March 31, 2017 to March 31, 2020. As a result, the time limit for listing of investment corporations on the infrastructure fund market has been extended accordingly, with the market itself becoming increasingly active, so we can look forward to even further growth ahead.
Investment units and other financial products that focus on infrastructure are listed on the infrastructure fund market, which is based on the REIT market system. In practice, however, infrastructure funds for the most part differ from REITs in terms of investment characteristics and risk. Also, infrastructure funds are more structured financial instruments. Due to such differences, the structure of infrastructure funds itself varies from that of REITs, so there are quite a few practical matters to consider when forming and listing infrastructure funds.
At MHM, not only did we act as issuer counsel for the very first two inaugural infrastructure funds, but we continue to provide legal advice to several clients on the various types and inner workings of listed infrastructure funds. We believe that MHM is the most accomplished and experienced firm in Japan when it comes to these funds.
We have grasped the latest information and trends through the tightly knit exchange of information and opinions with relevant agencies, organizations and market participants, and cultivated experience from client requests and consultations. Taking advantage of such information and experience, we have the organization and systems in place to support the formation and listing of infrastructure funds by coordinating our lawyers in related fields, including the infrastructure/energy practice group which is well-versed in construction and operation of various infrastructure assets and power plants, along with their project financing, and the asset management, REIT and capital markets practice groups which are vastly experienced in formation and listing of J-REITs and other entities/funds.
*Please note: Information is current as of the time of disclosure.