NEWS RELEASE
Oct 5, 2018

【R&I Green Bond Assessment】
Tokyo Century Corporation Unsec. Str. Bonds No. 25（Tokyo Century Green Bond）：GA1 Formal
Rating and Investment Information, Inc. (R&I) has announced the following R&I Green Bond
Assessment (GA1 (Formal)). R&I announced a preliminary assessment for this instrument on
September 10, 2018. The preliminary assessment has now been converted to a formal assessment.
【DESCRIPTION OF INSTRUMENT】
Unsec. Str. Bonds No. 25（Tokyo Century Green Bond）
Tokyo Century Corporation
JPY 10,000

INSTRUMENT NAMEISSUER
ISSUE AMOUNT (mn)
R&I GREEN BOND
ASSESSMENT
ISSUE DATE
MATURITY DATEGA1（Formal）
October 15, 2018
October 13, 2023

R&I has confirmed that the green bond is in conformity to the green bond framework developed by
Tokyo Century Corporation from the perspectives of the fixed issue amount, term, etc. and assigned
GA1 (Formal) to the green bond.
Details are provided in the attached press release dated September 10, 2018 regarding R&I Green
Bond Assessment (GA1 (Preliminary), Second Opinion).
In addition to this assessment, R&I has assigned a credit rating to Tokyo Century Green Bond. For
details, please refer to https://www.r-i.co.jp/en/index.html.

R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary Businesses(businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in
Article 299, paragraph (1), item (xxviii) of the Cabinet Office Ordinance on Financial Instruments
Business, etc. With respect to such business, relevant laws and regulations require measures to be
implemented so that activities pertaining to such business would not unreasonably affect the Credit
Rating Activities, as well as measures to prevent such business from being misperceived as the Credit
Rating Business.

1■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE
Sep 10, 2018

【R&I Green Bond Assessment】
Tokyo Century Corporation Tokyo Century Green Bond：GA1 (Preliminary)：Second Opinion(The second opinion is an opinion regarding the alignment with Green Bond Principles, etc.)

Rating and Investment Information, Inc. (R&I) has announced the following R&I Green Bond
Assessment (GA1 (Preliminary), Second Opinion).
【DESCRIPTION OF INSTRUMENT】
INSTRUMENT NAMEISSUER
ISSUE AMOUNT (mn)
R&I GREEN BOND
ASSESSMENT
ISSUE DATE
MATURITY DATETokyo Century Green BondTokyo Century Corporation
JPY 10,000 scheduled
GA1 (Preliminary)
October 2018 scheduled
October 2023 scheduled【Summary】
Tokyo Century Corporation (hereinafter referred to as Tokyo Century), is a leading general leasing
company closely related to Mizuho Financial Group. Its lines of business include the Equipment
Leasing business, the Specialty Financing business centering on shipping, aviation, environmental andenergy, and real estate, the Domestic Automobile Financing business centering on automobile leasing
and car rental, and the International Business. Kyocera TCL Solar LLC (hereinafter referred to as KTS),
jointly founded with Kyocera Corporation in August 2012, is engaged in solar power generation
business with approximately 258.1 MW of total output at 67 sites across Japan as of the end of August
2018.
Tokyo Century now considers issuing a green bond to invest the proceeds in leasing solar power
generation facilities for KTS, and has developed a green bond framework which addresses the four
core components of Green Bond Principles including use of proceeds, process for project evaluationand selection, management of proceeds, and reporting.
【R&I Green Bond Assessment】
R&I has judged, in accordance with R&I Green Bond Assessment Methodology, that the proceedsfrom the green bond would be invested into projects with significant environmental benefits, andassigned GA1 (preliminary) to the green bond. This is a preliminary assessment and will be reassessed
after the final confirmation of bond issuance details.
【Second Opinion on the alignment with Green Bond Principles, etc.】
R&I has also provided a second opinion that the green bond framework is aligned with Green Bond
Principles 2018 and Green Bond Guidelines 2017 by Ministry of the Environment of Japan.
Note that R&I has confirmed that the green bond under consideration is going to be in conformity to
the said framework from the perspectives of issue amount and term, details of eligible projects, assets
and investment schedule, etc.
2
■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE【Rationale】
The proceeds from the bond issuance will be used to refinance the purchase of solar power
generation facilities leased by Tokyo Century for KTS's solar power generation business. Among
KTS’s power plants, facilities whose lease contracts commenced in or after October 2016 shall beselected.

As to (1) whether environmental benefits yielded from eligible projects are enough, and (2) whether
considerations are given to a potentially negative effect during the operational and developmental
phase, R&I confirmed by interview or in writing the examination standards applied by Tokyo
Century to eligible projects and sampled power plants among the entire eligible projects, and has
judged that the KTS’s projects are adequate as a use of proceeds from the green bond.
With regard to the process for project evaluation and selection, the process will be involved byrelevant departments under leadership of Treasury Division. Based on the bonds comprehensive
resolution by Board of Directors, issuance of the green bond will be involved by Sustainability
Management Office in Corporate Planning Division that is engaged in planning, promotion andoverview of sustainability, and approved by Management Meeting. Evaluation and selection ofeligible projects will be involved by Environment & Energy Business Division I that has theexpertise in examining the effectiveness of solar power generation businesses and responsivenessto potentially negative aspects of environmental and social impacts. Eligible projects are
considered to be in line with the environmental policy declared by Tokyo Century's management
philosophy, etc.
The entire proceeds are to be allocated to refinancing. After the allocation, Tokyo Century will
ensure that lease balance outstanding of an eligible business is equal or greater than the amountof proceeds from the green bond. Unallocated proceeds (although they are not expected to incur)
will be managed as cash deposit, if incurred.
With regard to reporting, the asset allocation status and amount of CO2 emission reduction of theentire power plants of KTS will be disclosed on Tokyo Century's website once a year.
Tokyo Century has developed an environmental policy and framework, and promotes
environmental activities and efforts for energy saving in an office environment through its
businesses including KTS’s solar power generation business, etc.

R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary Businesses(businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in
Article 299, paragraph (1), item (xxviii) of the Cabinet Office Ordinance on Financial Instruments
Business, etc. With respect to such business, relevant laws and regulations require measures to be
implemented so that activities pertaining to such business would not unreasonably affect the Credit
Rating Activities, as well as measures to prevent such business from being misperceived as the Credit
Rating Business.

3■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE■ Outline of Issuer (Tokyo Century Corporation)
Tokyo Century is a leading general leasing company closely related to Mizuho Financial Group. Itslines of business include the Equipment Leasing business, the Specialty Financing business centeringon shipping, aviation, environmental and energy, and real estate, the Domestic Automobile Financing
business centering on automobile leasing and car rental, and the International Business. Tokyo Century
declares under the management philosophy "Contribution to Creating an Environmentally-Sound,
Sustainable Economy and Society" and is engaged in not only activities to reduce environmental
burden from an office environment but also environmental contributions through business activities.
Environmental contributions through business activities include environmental business-related
leasing, installment finance and finance transactions, refurbishment of used PCs, and renewableenergy businesses, etc.
In Specialty Financing, in particular, Tokyo Century focuses on renewable energy business by solar
power generation through its subsidiary KTS. The company operates solar power plants withapproximately 258.1 MW of total output at 67 sites across Japan as of the end of August 2018,
including Japan's largest floating solar power plant on the Yamakura Dam reservoir in Chiba prefecturethat was launched in March 2018.
The company also developed an energy-saving environment replacing street lamps to LED type anda solar power generation scheme that is designed to contribute to local production of clean energy for
local consumption. The project promoted for local governments under this scheme was selected as2016 Good Practice by Principles for Financial Action for the 21st Century.
In ASEAN member countries, Tokyo Century promotes initiatives including greenhouse gas reductionand energy self-sufficiency improvements by leveraging the Joint Crediting Mechanism (JCM),1 etc.,
and the company was selected as a representative participant for the first time as financial services
company in Japan.
As part of these initiatives, Tokyo Century has developed a green bond framework and considers
issuing a green bond. For the company to promote continuous environmental projects, the company
believes that the issuance of a green bond will contribute to deepening stakeholders' understanding of
its businesses and obtaining supports.

1

A bilateral mechanism proposed by the government of Japan as a means to facilitate the diffusion of leading low
carbon technologies, etc. in developing countries for reducing the quantity of their CO2 (GHG) emissions andappropriately evaluate contributions from Japan in a quantitative manner, aiming to recognize part of them as Japan'sachievement of emissions reduction.

4■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE■ Outline of Green Bond Framework (Tokyo Century Green Bond)At the issue of its green bond, Tokyo Century has prepared a green bond framework that constitutes
issuer's practical guidelines for the four standards of Green Bond Principles including use of proceeds,
process for project evaluation and selection, management of proceeds, and reporting. The outline of theframework is as follows:

1. Use of Proceeds:The proceeds from the green bond will be allocated to projects that satisfy the following selection
criteria.
Project
Project Name
category
Renewable
Solar power generation business implemented by Kyocera TCL SolarenergyLLCEligible business is solar power generation business implemented by Kyocera TCL Solar LLC(KTS), 81% ownership of which is held by Tokyo Century, the parent company. Tokyo Century
leases solar power generation facilities to KTS. The proceeds from the green bond will be used torefinance the fund to purchase the lease assets.
KTS is engaged in solar power generation business with approximately 258.1 MW of total output at
67 sites across Japan as of the end of August 2018, achieving the annual electricity generated forthe period from April 2017 to March 2018 of 149,681 MWh reducing CO2 emissions by 47,075 tons.
The scheme of KTS's solar power generation business is as follows:5■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE

Look-back period of projects eligible for refinancing shall be limited to a certain period in the past inline with market practice.
Potentially negative aspects of environmental impacts associated with solar power generation
business generally include damage or negative impacts on ecosystems caused by large-scaleland-development, outflow of muddy water, light pollution and negative impact on landscape, noiseand vibration from related facilities. KTS constructs power plants after it satisfies the requirementsof environment-related laws, regulations and ordinances concerning forest land development andenvironmental conservation, while it holds meetings to explain to local residents if needed, in orderto address environmentally and socially negative impacts.

6■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE
2. Process for Project Evaluation and Selection:









Tokyo Century declares that "Contribution to Creating an Environmentally-Sound, Sustainable
Economy and Society" in its management philosophy, and places KTS's solar power generation
business as an important initiative through which the company seeks sustainable growth. Tokyo
Century promotes social contribution and environmental conservation through its businessactivities.
By generating renewable energy, the business would yield high environmental benefits (reduces
CO2 emissions), while development and operation of the projects is conducted in due
consideration to potentially negative aspects of environmental and social impacts.
In the context of the above, after discussion between Environment & Energy Business Division I in
charge of lease finance in environment and energy and Treasury Division, Tokyo Century
concluded that it is appropriate to select KTS's solar power generation projects as eligible businessof the green bond.
The issuance of the green bond was discussed among Treasury Division, Sustainability
Management Office in Corporate Planning Division that is engaged in planning, promotion andoverview of company-wide sustainability, and Investor Relations Division, and has been promoted
as a matter that helps advancing the company's environmental businesses.
Based on the bonds comprehensive resolution by Board of Directors, the issuance of the green
bond approved by Management Meeting.
Tokyo Century Corporation Environmental Management System (EMS)

Board of Directors

Management Meeting【Sustainability Committee】【Environmental Manager】
President of the Risk Management Unit

Corporate Planning Division【EMS Internal Audit】
Audit Division【Environmental Management Committee】

Sustainability Management Office

Coordination【Environmental Management Office】
Business Risks Management Division【Person in Charge of Environment】
Head of each Division
and Branch Office【Eco Leader】
Responsible Person of each Division
and Branch Office

7■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE Tokyo Century's Environmental Activities Policy(1) Management Philosophy"Tokyo Century Group will work alongside customers in pursuit of their growth as a highly
specialized and unique financial services company and will contribute to the creation ofan environmentally-sound , sustainable economy and society."(2) Management Policy (abstract)"We will always be mindful of our social responsibility as a corporation and will conduct
our business activities with vigor and sincerity as we fulfill our role of creating asustainable economy and society."(3) Other Codes and Guidelines▶ Corporate Code of Conduct (abstract)
5. Preservation of the Environment
Tokyo Century Group seeks to preserve the environment in all areas of its businessactivities by endeavoring to create an environmentally-sound, sustainable economy
and society.
▶ Our Action Guidelines (abstract)
5. We will pursue activities to preserve the environment
We will maintain a high awareness of environmental issues and actively work topreserve the environment, which includes actions to prevent global warming andpromote energy conservation.
▶ Basic Environmental Policy (summary)
In accordance with (1) Management Philosophy presented above, Basic
Environmental Policy states that the company will implement initiatives that support
the five factors of the Policy including (1) Global Environmental Preservation throughBusiness; (2) Contribution to Creating an Environmentally-Sound, Sustainable
Economy and Society; (3) Promotion of Resource and Energy Conservation Activities;(4) Legal Compliance; and (5) Efforts for Continuous Improvement.

8■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE
3. Management of Proceeds:The proceeds from the green bond are to be allocated to refinancing immediately.
After the allocation, Treasury Division of Tokyo Century will ensure using the internal lease assets
management system on a quarterly basis that lease asset balance of an eligible project is equal or
greater than the amount of proceeds from the green bond.
Since the entire proceeds are to be allocated to refinancing, Tokyo Century states on a policy thatunallocated proceeds (although they are not expected to incur) shall be managed as cash deposit,
if incurred.
While the lease asset balance for KTS is expected to maintain a certain amount or greater now andin the future, if it falls below the amount of proceeds from the green bond, unallocated proceeds
would be used to refinance another lease asset with superior environmental benefits equivalent tothe said project.

4. Reporting:Tokyo Century will disclose green bond reporting on the company's website once a year.
The reporting mainly consists of (1) reporting on proceeds allocation status and (2) impact
reporting.
(1) will continue until the allocation is completed. Outline of KTS's representative power plants will
be disclosed.
(2) includes annual total output and amount of CO2 emission reduction of the entire power plants of
KTS as follows. This report will be disclosed.
Item

Unit

Reduce CO2 emissions
through solar power
generation business of
KTS

Annual electricity generated(MWh)Annual reduction in CO2 (t)(comparison withconventional thermal power
generation)

Period ending
March
2016
(actual)Period ending
March
2017
(actual)Period ending
March
2018
(actual)67,011

111,487

149,681

21,07535,06347,075

Source: Estimated by Tokyo Century in reference to Japan Photovoltaic Energy Association ”The standards of CO2 emissions
reduction”

9■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE■ Evaluation on Green Bond Framework (Second Opinion)
In line with R&I Green Bond Assessment Methodology, R&I evaluated if the green bond framework
prepared by Tokyo Century is in conformity to Green Bond Principles 2018 and Green Bond Guidelines
2017 by Ministry of the Environment of Japan.

1. Use of Proceeds:
For green bond proceeds to be used to invest in projects with environmental benefits, the eligible
projects in which the funds are invested must be identified as being environmentally beneficial.
Main basis for evaluation


Details of the framework

Examination criteria applied by Tokyo Century for the execution of leasing

Details of solar power plants sampled among the entire eligible projects
Evaluation










Under the framework, the proceeds are allocated to refinance the funds to purchase lease assets
for KTS's solar power generation business.
The eligible business is solar power generation business, a type of renewable energy, and is aneligible green asset which is assumed to yield sufficient environmental benefits (CO2 emissions
reduction).
As to (1) whether environmental benefits yielded from the eligible business are sufficient, and (2)whether considerations are given to potentially negative aspects of environmental impacts during
the operational and developmental phase, R&I examined by interview or in writing theexamination criteria applied by Tokyo Century to the eligible business and sampled power plants
among the entire eligible business.
From the (1) perspective, R&I confirmed that the business would have good viability based on
securement of project site, selection of major power generation facilities, and the O&M structure,and has judged that it would yield superior environmental benefits as eligible green bond project.
From the (2) perspective, R&I confirmed that Tokyo Century pays sufficient consideration to thesurrounding environment including an acquisition of permission and authorization required at thetime of development and operation, and has judged that the company pays sufficientconsideration to potential negative aspects of environmental impacts.
Allocation of the proceeds is restricted to eligible projects that were initiated within a certain
period. The proceeds are to be used to refinance a fund that was financed by commercial papers
issued by Tokyo Century. R&I therefore confirmed that the said assets are eligible for refinancing
with green bond proceeds.

For the reasons stated above, R&I has judged the use of proceeds under the framework is inconformity to Green Bond Principles 2018 and Green Bond Guidelines 2017 by Ministry of theEnvironment of Japan.

10■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE
2. Process for Project Evaluation and Selection:
For green bond proceeds to be used to invest in projects with environmental benefits, the issuer's
rationale and process regarding the selection of eligible projects must be clear and reasonable.
Main basis for evaluation


Details of the framework

Environmental policy of Tokyo Century



Examination criteria applied by Tokyo Century for the execution of leasingEligibility of the solar power plants sampled from the entire eligible projects
EvaluationThe eligible business is in conformity to Environmental Policy including the provision ofManagement Philosophy of Tokyo Century.
The eligible business would yield sufficient environmental benefits (have good viability) and pays
consideration to potentially negative aspects of environmental and social impacts.
With regard to the process for project evaluation and selection, the process will be involved byrelevant departments under leadership of Treasury Division. Based on the bonds comprehensive
resolution by Board of Directors, issuance of the green bond will be involved by Sustainability
Management Office in Corporate Planning Division that is engaged in planning, promotion andoverview of sustainability, and approved by Management Meeting. Evaluation and selection ofeligible projects will be involved by Environment & Energy Business Division I that has theexpertise in examining the effectiveness of solar power generation businesses andresponsiveness to potentially negative aspects of environmental and social impacts.

For the reasons stated above, R&I has judged the process for project evaluation and selection under
the framework is in conformity to Green Bond Principles 2018 and Green Bond Guidelines 2017 by
Ministry of the Environment of Japan.

11■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE
3. Management of Proceeds:
For the green bond proceeds to be used to invest in projects with environmental benefits, theproceeds must be allocated to eligible projects, and must not be invested in projects other than eligible
projects.
Main basis for evaluation


Details of the framework
EvaluationTokyo Century will allocate the proceeds from the green bond to refinancing immediately.
Treasury Division of Tokyo Century will ensure on a quarterly basis that lease asset balance ofthe eligible business exceeds the amount of proceeds from the green bond. In that sense,
measures to allocate the proceeds to eligible green projects are deemed to be in place.
Moreover, the policy for management of proceeds under the framework provides that unallocatedproceeds would be managed as cash deposit(although such proceeds are not expected to incurin principle), and in the cases where balance of lease assets outstanding fall below the amountof proceeds, unallocated proceeds would be reallocated to other lease assets with superior
environmental benefits.

For the reasons stated above, R&I has judged that the policy for management of proceeds under theframework is in conformity to Green Bond Principles 2018 and Green Bond Guidelines 2017 by Ministryof the Environment of Japan.

4. Reporting:To ensure that green bond proceeds are used to invest in projects with environmental benefits, theissuer is expected to provide details on the eligible projects, the timing of investments, and theenvironmental benefits yielded by the projects.
Main basis for evaluation


Details of the framework
Evaluation



Reporting on the green bond will be disclosed on Tokyo Century's website once a year. It
consists of proceeds allocation status reporting and impact reporting on the entire power plantsof KTS and is deemed adequate.

For the reasons stated above, R&I has judged that reporting under the framework is in conformity toGreen Bond Principles 2018 and Green Bond Guidelines 2017 by Ministry of the Environment of Japan.
12■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE<Comprehensive Evaluation>
In line with the assessment methodology of R&I green bond assessment, R&I has judged that theframework is in conformity to Green Bond Principles 2018 and Green Bond Guidelines 2017 by Ministryof the Environment of Japan.
This second opinion shall be applied to the green bond to be issued at this time. For subsequentissues, R&I will review the status and then release its second opinion again.

13■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE■ Evaluation Result on the Green Bond
In line with the assessment methodology of R&I Green Bond Assessment, R&I confirmed if theamount and term of the green bond to be issued, as well as details of eligible projects and the allocation
schedule, etc. thereof, are in conformity to the provisions of the framework. Also, in accordance with thedetails of the framework and specific measures to be taken for the green bond, R&I evaluated theextent the proceeds from the green bond are used to invest in businesses with environmental benefits.

1. Use of Proceeds:






The selected projects eligible for the green bond are among the eligible businesses (KTS's solar
power plants) under the framework whose lease contract was closed within the past two years, andthey are in conformity to the green bond framework.
Along with the evaluation of the framework, R&I verified (1) whether environmental benefits yieldedfrom eligible projects are sufficient, and (2) whether considerations are given to potentially negative
aspects of environmental impacts during the operational and developmental phase.
As a result, R&I confirmed that environmental benefits yielded from the eligible projects is sufficient,and considerations are given to potentially negative aspects of environmental impacts during theoperational and developmental phase.
The proceeds are to be used to refinance the fund to purchase solar power generation facilities
leased to the eligible projects whose lease contract was closed within the past two years.
R&I also confirmed that the lease asset balance of eligible businesses exceeds the expectedamount of proceeds from the green bond to a sufficient extent both at an initial stage and at thetime the green bond matures.
For the reasons stated above, R&I has judged that the proceeds from the green bond will be used
to projects with superior environmental benefits.

2. Process for Project Evaluation and Selection:

R&I confirmed that projects eligible for the green bond will be selected based on the framework
established by the issuer.
R&I has judged that the process for project evaluation is very clear and reasonable.

3. Management of Proceeds:

R&I confirmed that the proceeds will be managed based on the framework established by theissuer.
R&I has judged that the proceeds management framework of the green bond is excellent.

14■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE
4. Reporting:

R&I confirmed that reporting will be implemented in accordance with the framework stipulated by
the issuer.
R&I has judged that the policy for reporting on the green bond is excellent in content andfrequency.

5. Environmental activities of the issuer:
The extent the proceeds from a green bond is used to invest in businesses with environmental
benefits is considered to be affected by issuer's attitude toward environmental activities and trackrecords of such activities. This is because an issuer with higher interest in and more track records ofenvironmental activities are more likely to allocate proceeds from a green bond to businesses withenvironmental benefits and get those businesses done.
Tokyo Century developed environmental policy and structure and has promoted environmental
activities through KTS's solar power generation business, among others, and energy-saving efforts
in an office environment. The company has been selected as a representative participant of the
Joint Credit Mechanism (JCM) for the first time as finance and services company in Japan.



R&I has judged that the company's attitude toward environmental activities is excellent.

15■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE<Comprehensive Evaluation>
For the reasons stated above, R&I has judged that the green bond will be issued under theframework established by the issuer and is in conformity to Green Bond Principles 2018 and the four
requirements of Green Bond Guidelines 2017 by Ministry of the Environment of Japan.
R&I also evaluated the green bond in line with R&I Green Bond Assessment. In accordance with thecomprehensive evaluation based on individual evaluation result by item, R&I has judged that theproceeds from the green bond subject to evaluation is highly likely to be used to invest in businesses
with environmental benefits and assigned GA1 (preliminary) to the bond. Individual evaluation result byitem is as follows:【Assessment of each item】
being the highest and being
Each item has been assessed on a scale of one to five, withthe lowest.
Item
Assessment
Summary
Sufficient environmental benefits would beyielded from eligible solar power plants, andconsiderations are paid to potentially negative
aspects of environmentally negative impacts
Use of proceeds
during development and operation. The extent
the businesses yield environmental benefits
has been judged to be particularly high.
Process for project evaluation andselection

The process for project evaluation andselection of the green bond has been judged
to be excellent in clarity and reasonableness.

Management of proceeds

Management of proceeds from the green
bond has been judged to be appropriately
established and excellent.
Reporting policy of the green bond has been
judged to be excellent in content andfrequency.
The issuer developed environmental policy
andstructureandhaspromoted
environmental activities through businesses
and energy-saving efforts in an officeenvironment. The issuer's attitude toward
environmental activities has been judged to
be excellent.

ReportingIssuer’s environmental contribution
activities

The methodology for R&I Green Bond Assessment is disclosed on R&I’s website.
https://www.r-i.co.jp/en/rating/products/green_bond/methodology.html

16■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

NEWS RELEASE

R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds areused to invest in projects with environmental benefits. In R&I Green Bond Assessment, R&I may also provide a second
opinion on a green bond framework. R&I Green Bond Assessment does not certify the environmental benefits and otherqualities of the eligible projects. Hence, R&I will not be held responsible for the effectiveness of the projects, including theirenvironmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary Businesses(businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph(1), item (xxviii) of the Cabinet Office Ordinance on Financial Instruments Business, etc. With respect to such business,relevant laws and regulations require measures to be implemented so that activities pertaining to such business would not
unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as theCredit Rating Business.
R&I Green Bond Assessment is not, in any sense, statements of current, future, or historical fact and should not beinterpreted as such, and R&I Green Bond Assessment is not a recommendation to purchase, sell, or hold any particular
securities and does not constitute any form of advice regarding investment decisions or financial matters. R&I Green Bond
Assessment does not address the suitability of an investment for any particular investor. R&I issues R&I Green Bond
Assessment based on the assumption that each investor will investigate and evaluate the securities which they plan topurchase, sell, or hold for themselves. All investment decisions shall be made at the responsibility of the individual investor.
The information used when R&I issues R&I Green Bond Assessment is information that R&I has determined, at its own
discretion, to be reliable. However, R&I does not undertake any independent verification of the accuracy or other aspects ofthat information. R&I makes no representation or warranty, express or implied, as to the accuracy, timeliness, adequacy,
completeness, merchantability, fitness for any particular purpose, or any other matter with respect to any such information.
R&I may suspend or withdraw R&I Green Bond Assessment at its discretion due to insufficient data or information, or othercircumstances.
R&I is not responsible or liable in any way to any party, for all or any damage, loss, or expenses arising out of or in relation toerrors, omissions, inappropriateness of, or insufficiencies in the information used when issuing R&I Green Bond Assessment,
R&I Green Bond Assessment or other opinions, or arising out of or in relation to the use of such information or R&I Green
Bond Assessment, or amendment, suspension, or withdrawal of R&I Green Bond Assessment (regardless of the nature of thedamage, including direct, indirect, ordinary, special, consequential, compensatory, or incidental damage, lost profits, nonmonetary damage, and any other damage, and including expenses for attorneys and other specialists), whether in contract,
tort, for unreasonable profit or otherwise, irrespective of negligence or fault of R&I. As a general rule, R&I issues R&I Green
Bond Assessment for a fee paid by the applicant.
The Assessment Methodologies R&I uses in connection with evaluation are R&I’s opinions prepared based on R&I’s own
analysis and research, and R&I makes no representation or warranty, express or implied, as to the accuracy, timeliness,
adequacy, completeness, merchantability, fitness for any particular purpose, or any other matter with respect to theAssessment Methodologies. Further, disclosure of the Assessment Methodologies by R&I does not constitute any form ofadvice regarding investment decisions or financial matters or comment on the suitability of any investment for any party. R&I
is not liable in any way for any damage arising in respect of a user or other third party in relation to the content or the use of
the Assessment Methodologies, regardless of the reason for the claim, and irrespective of negligence or fault of R&I. All rights
and interests (including patent rights, copyrights, other intellectual property rights, and know-how) regarding the Assessment
Methodologies belong to R&I. Use of the Assessment Methodologies, in whole or in part, for purposes beyond personal use(including reproducing, amending, sending, distributing, transferring, lending, translating, or adapting the information), andstoring the Assessment Methodologies for subsequent use, is prohibited without R&I’s prior written permission.
【Japanese is the official language of this material and if there are any inconsistencies or discrepancies between theinformation written in Japanese and the information written in languages other than Japanese the information written in
Japanese will take precedence.】

17■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

Green Bond / Green Bond Programme
Independent External Review Form

Section 1.

Basic Information

Issuer name: Tokyo Century Corporation
Green Bond ISIN or Issuer Green Bond Framework Name, if applicable:
Independent External Review provider’s name: Rating and Investment Information, Inc. (R&I)
Completion date of this form: October 5, 2018
Publication date of review publication: October 5, 2018

Section 2.

Review overview

SCOPE OF REVIEWThe following may be used or adapted, where appropriate, to summarise the scope of the review.

The review assessed the following elements and confirmed their alignment with the GBPs:☒☒☒

Use of Proceeds
Management of Proceeds☒

Process for Project Evaluation and Selection
Reporting

ROLE(S) OF INDEPENDENT EXTERNAL REVIEW PROVIDER☒

Second Party Opinion☐

Certification☐

Verification☒

Scoring/Rating☐

Other (please specify):

Note: In case of multiple reviews / different providers, please provide separate forms for each review.

Latest update: June 2018
1
■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

EXECUTIVE SUMMARY OF REVIEW and/or LINK TO FULL REVIEW (if applicable)[R&I Green Bond Assessment]
R&I has judged, in accordance with R&I Green Bond Assessment Methodology, that the proceeds fromthe green bond would be invested into projects with significant environmental benefits, and assigned GA1
to the green bond.
[Second Opinion on the alignment with Green Bond Principles, etc.]
R&I has also provided a second opinion that the green bond framework is aligned with Green Bond
Principles 2018 and Green Bond Guidelines 2017 by Ministry of the Environment of Japan.
For details, please refer to R&I Green bond assessment report above.

Section 3.

Detailed review

Reviewers are encouraged to provide the information below to the extent possible and use the comment section to
explain the scope of their review.

1. USE OF PROCEEDS
Overall comment on section (if applicable):＜Evaluation on the Green Bond Framework＞
Under the framework, the proceeds are allocated to refinance the funds to purchase lease assets for KTS's
solar power generation business.
The eligible business is solar power generation business, a type of renewable energy, and is an eligible
green asset which is assumed to yield sufficient environmental benefits (CO2 emissions reduction).
As to (1) whether environmental benefits yielded from the eligible business are sufficient, and (2) whether
considerations are given to potentially negative aspects of environmental impacts during the operationaland developmental phase, R&I examined by interview or in writing the examination criteria applied by
Tokyo Century to the eligible business and sampled power plants among the entire eligible business.
From the (1) perspective, R&I confirmed that the business would have good viability based on securementof project site, selection of major power generation facilities, and the O&M structure, and has judged that
it would yield superior environmental benefits as eligible green bond project.
From the (2) perspective, R&I confirmed that Tokyo Century pays sufficient consideration to thesurrounding environment including an acquisition of permission and authorization required at the time ofdevelopment and operation, and has judged that the company pays sufficient consideration to potential
negative aspects of environmental impacts.
Allocation of the proceeds is restricted to eligible projects that were initiated within a certain period. The
proceeds are to be used to refinance a fund that was financed by commercial papers issued by Tokyo
Century. R&I therefore confirmed that the said assets are eligible for refinancing with green bond proceeds.
For the reasons stated above, R&I has judged the use of proceeds under the framework is in conformity toGreen Bond Principles 2018 and Green Bond Guidelines 2017 by Ministry of the Environment of Japan.

2■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

＜Evaluation on the Green Bond＞
The selected projects eligible for the green bond are among the eligible businesses (KTS's solar power
plants) under the framework whose lease contract was closed within the past two years, and they are inconformity to the green bond framework.
Along with the evaluation of the framework, R&I verified (1) whether environmental benefits yielded from
eligible projects are sufficient, and (2) whether considerations are given to potentially negative aspects ofenvironmental impacts during the operational and developmental phase.
As a result, R&I confirmed that environmental benefits yielded from the eligible projects is sufficient, andconsiderations are given to potentially negative aspects of environmental impacts during the operationaland developmental phase.
The proceeds are to be used to refinance the fund to purchase solar power generation facilities leased tothe eligible projects whose lease contract was closed within the past two years.
R&I also confirmed that the lease asset balance of eligible businesses exceeds the expected amount ofproceeds from the green bond to a sufficient extent both at an initial stage and at the time the green bondmatures.
For the reasons stated above, R&I has judged that the proceeds from the green bond will be used toprojects with superior environmental benefits.

Use of proceeds categories as per GBP:☒

Renewable energy☐

Energy efficiency☐

Pollution prevention and control☐

Environmentally sustainable managementof living natural resources and land use☐

Terrestrial and aquatic biodiversity
conservation☐

Clean transportation☐

Sustainable water and wastewater
management☐

Climate change adaptation☐

Eco‐efficient and/or circular economy adapted
products, production technologies andprocesses☐

Green buildings☐

Unknown at issuance but currently expected
to conform with GBP categories, or othereligible areas not yet stated in GBPs☐

Other (please specify):

If applicable please specify the environmental taxonomy, if other than GBPs:

3■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

2. PROCESS FOR PROJECT EVALUATION AND SELECTION
Overall comment on section (if applicable):＜Evaluation on the Green Bond Framework＞
The eligible business is in conformity to Environmental Policy including the provision of Management
Philosophy of Tokyo Century.
The eligible business would yield sufficient environmental benefits (have good viability) and pays
consideration to potentially negative aspects of environmental and social impacts.
With regard to the process for project evaluation and selection, the process will be involved by relevant
departments under leadership of Treasury Division. Based on the bonds comprehensive resolution by Boardof Directors, issuance of the green bond will be involved by Sustainability Management Office in Corporate
Planning Division that is engaged in planning, promotion and overview of sustainability, and approved by
Management Meeting. Evaluation and selection of eligible projects will be involved by Environment &Energy Business Division I that has the expertise in examining the effectiveness of solar power generation
businesses and responsiveness to potentially negative aspects of environmental and social impacts.
For the reasons stated above, R&I has judged the process for project evaluation and selection under theframework is in conformity to Green Bond Principles 2018 and Green Bond Guidelines 2017 by Ministry of
the Environment of Japan.
＜Evaluation on the Green Bond＞
R&I confirmed that projects eligible for the green bond will be selected based on the framework
established by the issuer.
R&I has judged that the process for project evaluation is very clear and reasonable.

Evaluation and selection
☒
☒
☒

☒

Credentials on the issuer’s environmental
sustainability objectives
Defined and transparent criteria for
projects eligible for Green Bond proceeds
Summary criteria for project evaluationand selection publicly available☒☐

Documented process to determine thatprojects fit within defined categories
Documented process to identify and manage
potential ESG risks associated with the project
Other (please specify):

Information on Responsibilities and Accountability☐☐☒

Evaluation / Selection criteria subject toexternal advice or verification
Other (please specify):

In‐house assessment

4■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

3. MANAGEMENT OF PROCEEDS
Overall comment on section (if applicable):＜Evaluation on the Green Bond Framework＞
Tokyo Century will allocate the proceeds from the green bond to refinancing immediately. Treasury
Division of Tokyo Century will ensure on a quarterly basis that lease asset balance of the eligible businessexceeds the amount of proceeds from the green bond. In that sense, measures to allocate the proceeds toeligible green projects are deemed to be in place.
Moreover, the policy for management of proceeds under the framework provides that unallocatedproceeds would be managed as cash deposit(although such proceeds are not expected to incur inprinciple), and in the cases where balance of lease assets outstanding fall below the amount of proceeds,
unallocated proceeds would be reallocated to other lease assets with superior environmental benefits.
For the reasons stated above, R&I has judged that the policy for management of proceeds under theframework is in conformity to Green Bond Principles 2018 and Green Bond Guidelines 2017 by Ministry of
the Environment of Japan.
＜Evaluation on the Green Bond＞
R&I confirmed that the proceeds will be managed based on the framework established by the issuer.
R&I has judged that the proceeds management framework of the green bond is excellent.

Tracking of proceeds:☒

Green Bond proceeds segregated or tracked by the issuer in an appropriate manner☒Disclosure of intended types of temporary investment instruments for unallocated proceeds☐

Other (please specify):

Additional disclosure:☐

Allocations to future investments only☒☐

Allocation to individual disbursements☒

Allocations to both existing and future
investments
Allocation to a portfolio of disbursements☐

Disclosure of portfolio balance of
unallocated proceeds☐

Other (please specify):

5■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

4. REPORTING
Overall comment on section (if applicable):＜Evaluation on the Green Bond Framework＞
Reporting on the green bond will be disclosed on Tokyo Century's website once a year. It consists ofproceeds allocation status reporting and impact reporting on the entire power plants of KTS and is deemed
adequate.
For the reasons stated above, R&I has judged that reporting under the framework is in conformity toGreen Bond Principles 2018 and Green Bond Guidelines 2017 by Ministry of the Environment of Japan.
＜Evaluation on the Green Bond＞
R&I confirmed that reporting will be implemented in accordance with the framework stipulated by theissuer.
R&I has judged that the policy for reporting on the green bond is excellent in content and frequency.

Use of proceeds reporting:☐

Project‐by‐project☒

On a project portfolio basis☐

Linkage to individual bond(s)☐Other (please specify):☐

Green Bond financed share of total investment☐

Semi‐annual

Information reported:☒ Allocated amounts☐ Other (please specify):

Frequency:☒ Annual☐ Other (please specify):

Impact reporting:☐

Project‐by‐project☒

On a project portfolio basis☐

Linkage to individual bond(s)☐Other (please specify):☐

Semi‐annual

Frequency:☒ Annual☐ Other (please specify):

6■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

Information reported (expected or ex‐post):☒ GHG Emissions / Savings☐

Energy Savings☐ Decrease in water use☐

Other ESG indicators (please specify): annual
total output of the entire power plants of KTS☐

Information published in sustainability report

Means of Disclosure☐

Information published in financial report☐

Information published in ad hoc☒ Other (please specify): Issuer’s website
documents
Reporting reviewed (if yes, please specify which parts of the reporting are subject to external
review):☐

Where appropriate, please specify name and date of publication in the useful links section.

USEFUL LINKS (e.g. to review provider methodology or credentials, to issuer’s documentation, etc.)
The methodology for R&I Green Bond Assessment
https://www.r-i.co.jp/en/rating/products/green_bond/methodology.html

SPECIFY OTHER EXTERNAL REVIEWS AVAILABLE, IF APPROPRIATE
Type(s) of Review provided:☐

Second Party Opinion☐

Certification☐

Verification☐

Scoring/Rating☐

Other (please specify):

Review provider(s):Date of publication:

7■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.

ABOUT ROLE(S) OF INDEPENDENT REVIEW PROVIDERS AS DEFINED BY THE GBP
1. Second Party Opinion: An institution with environmental expertise, that is independent from theissuer may issue a Second Party Opinion. The institution should be independent from the issuer’s
adviser for its Green Bond framework, or appropriate procedures, such as information barriers, will
have been implemented within the institution to ensure the independence of the Second Party
Opinion. It normally entails an assessment of the alignment with the Green Bond Principles. In
particular, it can include an assessment of the issuer’s overarching objectives, strategy, policy and/or
processes relating to environmental sustainability, and an evaluation of the environmental features of
the type of projects intended for the Use of Proceeds.
2. Verification: An issuer can obtain independent verification against a designated set of criteria, typicallypertaining to business processes and/or environmental criteria. Verification may focus on alignment
with internal or external standards or claims made by the issuer. Also, evaluation of theenvironmentally sustainable features of underlying assets may be termed verification and mayreference external criteria. Assurance or attestation regarding an issuer’s internal tracking method foruse of proceeds, allocation of funds from Green Bond proceeds, statement of environmental impact oralignment of reporting with the GBP, may also be termed verification.
3. Certification: An issuer can have its Green Bond or associated Green Bond framework or Use ofProceeds certified against a recognised external green standard or label. A standard or label defines
specific criteria, and alignment with such criteria is normally tested by qualified, accredited third
parties, which may verify consistency with the certification criteria.
4. Green Bond Scoring/Rating: An issuer can have its Green Bond, associated Green Bond framework or
a key feature such as Use of Proceeds evaluated or assessed by qualified third parties, such as
specialised research providers or rating agencies, according to an established scoring/rating
methodology. The output may include a focus on environmental performance data, the process
relative to the GBP, or another benchmark, such as a 2‐degree climate change scenario. Suchscoring/rating is distinct from credit ratings, which may nonetheless reflect material environmental
risks.

8■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact: Corporate Planning Division (Public Relations)

TEL. +81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL. +81-(0)3-6273-7273

Rating and Investment Information, Inc.

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp
R&I Green Bond Assessment is R&I’s opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits
and is not statements of fact. R&I Green Bond Assessment does not certify the environmental benefits and other qualities of the eligible projects. Hence, R&I will not be held
responsible for the effectiveness of the projects, including their environmental benefits. R&I Green Bond Assessment is not the Credit Rating Business, but one of the Ancillary
Businesses (businesses excluding Credit Rating Service but are ancillary to Credit Rating Activities) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining tosuch business would not unreasonably affect the Credit Rating Activities, as well as measures to prevent such business from being misperceived as the Credit Rating Business. Further,R&I does not give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of theaccuracy or other aspects of the related information when issuing R&I Green Bond Assessment and makes no related representations or warranties. R&I is not liable in any way forany damage arising in relation to R&I Green Bond Assessment (including amendment or withdrawal thereof). As a general rule, R&I issues R&I Green Bond Assessment for a fee paidby the applicant. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html.

©Rating and Investment Information, Inc.