20-D-0350

July 10, 2020
Social Bond Evaluation b y Japan Credit Rating Agenc y, Ltd.
Japan Credit Rating Agency, Ltd. (JCR) announces Social Bond Evaluation Results as follows.

JCR assigned Social 1
to the Bonds of Orient Corporation.

Subject:

24th Series of Unsecured Bonds of Orient Corporation(with limited inter-bond pari passu rider) (social bonds)
Orient Corporation 25th Series of Unsecured Bonds(with limited inter-bond pari passu rider) (social bonds

Type:

Straight bonds

Issue Amount:

Interest Rate:

Issue Date:

Final Redemption
Date
Method ofRepayment
Use of Proceeds:

24th bond: JPY5 billion
25th bond: JPY5 billion
24th bond: 0.32%
25th bond: 0.32%
24th bond of bonds: July 28, 2020
25th bond of bonds: July 17, 2020
24th bond of bonds: July 28, 2025
25th bond of bonds: July 17, 2025

:Bullet:Refinancing of the funds raised to finance the implementation of the schoolaffiliated education loan

<Social Bond Evaluation Results>
Overall Evaluation

Social 1

Social Impact Evaluation(Use of Proceeds)
Management, Operation andTransparency Evaluation

s1m1

Chapter 1: Evaluation Overview
Orient Corporation (the “Company”) is a consumer credit company founded in 1954 and operates four corebusinesses: credit card and loan business, settlement and assurance business, installment sales of individual items,and bank guarantee business. In particular, it ranks among the top in the industry in terms of auto loans andshopping credit transactions and the balance of bank guarantees outstanding.

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The Company’s basic philosophy is "We value our relationship of trust and aim to be a company that contributes tosociety through the realization of a prosperous life for our customers." The Company has been actively conducting
CSR activities with a focus on social contribution and environmental initiatives within the Company.
The bonds subject to this evaluation (the “Bonds”) are 5-year unsecured bonds issued by the Company. JCR
evaluates whether the Bonds aligns with the Social Bonds Principles (2018) (the “SBP”)1 and SDGs. The SBP arenot binding because they are voluntary principles published by ICMA (International Capital Market Association)
and are not regulations. However, the SBP are globally referred to at this point in time, and thus, JCR shallevaluates the bonds’ compliance with the SBP. In addition, the SBP emphasizes the consistency between the usesof the proceeds of social bonds and their social benefits (impacts) and international sustainability goals andnational policies. Therefore, JCR refers the mapping between the SBP and SDGs as a reference indicator in theevaluation.
The proceeds of the Bonds are used to refinance the funds (redeem commercial papers) for implementing schoolaffiliated educational loans (schooling support plans) implemented by the Company. The cost of higher educationin Japan is high compared to other OECD member countries, and the burden on disposable income of households
is large. In addition, there is a need for financing that cannot be covered by the public financial support andscholarship systems alone. Therefore, JCR considers that the school fee support plan through this education loan
provided by the Company, is socially meaningful as it can contribute to resolve one of the issues of higher
education in Japan described above.
JCR evaluates that the management of the Company is highly transparent; The use of proceeds are selected by themanagement with an appropriate process, funds are properly managed according to the prescribed rules from theissuance to the repayment of the Bonds, and social impact reporting are appropriately planned.
Consequently, based on the JCR Social Finance Evaluation methodology, JCR assigned "s1" for the "Social Impact
Evaluation (Use of Proceeds)" and "m1" for the "Management, Operation and Transparency Evaluation." As aresult, JCR assigned "Social 1" for the overall evaluation of "JCR Social Bond Evaluation." Evaluation results arediscussed in detail in the next chapter.
The Bonds are considered to meet the standards for the items required by the SBP. JCR considers that they will
also contribute to SDGs and governmental concrete measures for SDGs.
(Responsible analyst for this evaluation) Atsuko Kajiwara and Rieko Kikuchi

1

ICMA(International Capital Market Association) Principles for Social Bonds 2018
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Important explanation of the Social Bond Evaluation
1. Assumptions, Significance, and Limitations of JCR Social Bond Evaluation
JCR Social Bond Evaluation assigned and provided by Japan Credit Rating Agency, Ltd. (JCR) is the expression of acomprehensive opinion of JCR at this moment concerning both the degree of the proceeds allocated to social projects definedby JCR, and the extent to which management, operation, and transparency initiatives relating to the use of proceeds. Thisevaluation is JCR’s overall opinion at this moment, and it does not perfectly disclose all the efforts taken by the issuer/borrower
to ensure the use of proceeds, administration, management of the proceeds and the transparency.
JCR Social Bond Evaluation is to evaluate the allocation plan of the proceeds to social projects at the time of issuing socialbonds or planning to issue social bonds and does not guarantee the future actual allocation of the proceeds. JCR does notguarantee the positive impacts on social issues by the social bond nor is liable for the expected impacts. JCR affirms that thesocial impacts, which will be realized by the allocated proceeds, are calculated quantitatively or qualitatively by the third parties,
but in principle, JCR will not calculate them by itself.
2. Methodologies used in the conduct of this evaluation
The methodologies used in this evaluation are disseminated on JCR website (Sustainable Finance and ESG in
https://www.jcr.co.jp/en) as JCR Social Finance Evaluation Methodology.
3. Relationship with Acts Related to Credit Rating Business
JCR Social Bond Evaluation is determined and provided by JCR as an ancillary service, which is independent from theactivities related to the credit rating business.
4. Relationship with Credit Ratings
This evaluation is not a credit rating, nor promising to provide and disclose a predetermined credit rating.
5. Third Party in Evaluating JCR Social Bond
There is no conflict of interest related to capital or human resources relationships between the subject of this evaluation andJCR.
■Disclaimers

The information contained in this document has been obtained by JCR from the Borrower and from accurate and reliable sources. Provided, however, that suchinformation may be erroneous due to human, mechanical or other reasons. Accordingly, JCR makes no representation or warranty, express or implied, as to theaccuracy, results, accuracy, timeliness, completeness, marketability, or fitness for a particular purpose of such information, and JCR assumes no responsibility forany error, omission, or result of using such information. In no event shall JCR be liable for any special, indirect, incidental or consequential damages of any kind,including opportunity loss, monetary loss, which may arise from any use of such information, whether contractual, tort, negligence or other cause of liability, andwhether or not such damages are foreseeable or unforeseeable. JCR Social Bond Assessment does not express any opinion on the various risks (credit risk, pricefluctuation risk, market liquidity risk, price fluctuation risk, etc.) related to social bonds subject to evaluation. JCR Social Bond Evaluation is a comprehensive
statement of opinion at the present time of JCR and is not a statement of fact and does not make any recommendations regarding risk judgment or the decision topurchase, sell or hold individual bonds, commercial paper, etc. JCR Social Bond Evaluations may be changed, suspended, or withdrawn due to changes ininformation, lack of information, or other reasons. All rights to this document, including data from JCR Social Bond Evaluation, are held by JCR. Reproduction,adaptation, modification or alteration of this document, in whole or in part, including data from JCR Social Bond Evaluation, without the permission of JCR isprohibited.

■GlossaryJCR Social Bond Evaluation: JCR Social Bond Evaluation evaluates the extent to which funds procured through social bonds are allocated to social projects as
defined by JCR, as well as the level of management, operation, and transparency efforts related to the use of funds for the relevant social bonds. Evaluations areperformed on a five-point scale, from top to top, using the Social1, the Social2, the Social3, the Social4, and the Social5 valuation symbols.

■ Status of registration as an external evaluator for sustainable finance, etc.
・ Environment Ministry's Green Bond Issuance Registration
・ Members of the Working Group on Social Bonds (ICMA)・ Members of the Working Group on UNEP FI Positive Impact Finance Principles■Status of registration as a credit rating agency, etc.
・ Credit Rating Agency: the Commissioner of the Financial Services Agency (Rating) No.1
・ EU Certified Credit Rating Agency
・ NRSRO: JCR has registered with the following four of the five credit rating classes of the Securities and Exchange Commission's NRSRO(Nationally RecognizedStatistical Rating Organization. (1)Financial institutions, broker dealers, (2) insurance companies, (3) general business corporations, and (4) government and localgovernments. If we are subject to disclosures under Rule 17g-7(a) of the U.S. Securities and Exchange Commission, such disclosures are attached to JCR's website(the news releases appearing on the https://www.jcr.co.jp/en)).

■ For further information, contact

Information Service Dept. TEL: :03-3544-7013 FAX: :03-3544-7026

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

Copyright © Japan Credit Rating Agency, Ltd. All rights reserved.

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