August 8, 2024
To whom it may concern,
Name of company:
Toyobo Co., Ltd.
Name of representative: Ikuo Takeuchi,
President and Representative Director(Stock code: 3101, Prime Market of the Tokyo Stock Exchange)
Contact:
Hidekazu Takahashi,
General Manager, Financial Department(TEL +81-6-6348-3137)

Notice regarding financing through a subordinated loan and publicly offered
subordinated bonds
Toyobo Co., Ltd. (“Toyobo,” hereafter) hereby announces that, at its Board of Directors meeting held on
August 8, 2024, it resolved to raise a total of approximately 40.0 billion yen in funds (the “Financing,”hereafter) through a subordinated term loan (the “Subordinated Loan,” hereafter) and the first unsecuredbonds (subordinated bonds) with an interest defferable clause and early redemption clause (the“Subordinated Bonds,” hereafter). The details are as follows.
Toyobo has submitted amended shelf registration statements to the Kanto Local Finance Bureau today(August 8, 2024) for the issuance of the Subordinated Bonds.
1. Aim and Background of the Financing
Based on its corporate philosophy “Jun-Ri-Soku-Yu” (adhering to reason leads to prosperity), the Toyobo
Group (“the Group”, hereafter) formulated “Sustainable Vision 2030,” aiming to achieve its vision of“Ushering in both a prosperous society where people can live with peace of mind and the enhancementof corporate value.” With the “2025 Medium-Term Management Plan” serving as a milestone for achieving
its targets, the Group positioned the period of the plan as “four years to remake and prepare” and isstriving to “make changes for sustainable growth.”
As the Group’s growth strategy, in the films business and life science business that are positioned as“businesses focusing on expansion,” the Group will proactively invest in strengthening production ofhighly functional films, increasing manufacturing capacity in the biotechnology business and medical
materials business, and other initiatives, aiming for medium- to long-term growth. We also reassessed
the environmental and functional materials business in terms of growth opportunity and potential of eachof its products. We will begin efforts to grow and expand this business by establishing and operating a
joint venture with Mitsubishi Corporation, aiming to make it our third pillar.
On the other hand, the business environment surrounding the Group is changing drastically mainly due
to heightened geopolitical risks and persistently high raw material and fuel prices. Amid this challenging
business environment, the Group will ensure that upfront investments for future growth are made at every
available opportunity, and will work to achieve “Progress to the Next Growth Stage (New Creation)” inorder to enhance corporate value as set forth in “Sustainable Vision 2030.”
Aiming to both implement the growth strategy through these upfront investments and achieve financial
soundness for leaps forward in the future, Toyobo has decided at this time to conduct the Financing.

12. Features of the Subordinated Loan and Subordinated Bonds
The Subordinated Loan and Subordinated Bonds are hybrid finance instruments with characteristics
midway between equity and debt. Because they are classified as debt, there will be no dilution of shares.
However, because claims for repayment will be subordinated in the repayment order compared to otherinterest-bearing debt in liquidation proceedings and bankruptcy proceedings, and because there are very
long maturities, voluntary deferred interest payment clauses and other features, these instruments havecharacteristics and features similar to equity. Therefore, ratings agencies (Rating and Investment
Information, Inc. and Japan Credit Rating Agency, Ltd.) are expected to assess the equity content as 50%of the amount of funds raised.
The amount of funds to be raised through the Subordinated Loan and Subordinated Bonds will be a totalof approximately 40.0 billion yen, and the specific breakdown will be determined after comprehensively
considering demand conditions, interest rate trends, and other factors.
3. Outline of the Subordinated Loan
Although Toyobo plans to make a final decision on the detailed terms and conditions of the Subordinated
Loan on September 25, 2024, the following contents are currently being considered. Once the detailed
terms and conditions are determined, Toyobo will promptly announce them.
Loan amount20.0 billion yen (scheduled)Signing date

September 25, 2024 (scheduled)

Loan execution date

September 30, 2024 (scheduled)

Repayment date

September 30, 2059 (scheduled)
However, voluntary early repayment of all or part of theprincipal is possible on each interest payment date after 5
years have passed since the funds were borrowed.

Subordinated Loan preliminary rating

BBB (Rating and Investment Information, Inc.)
BBB+ (Japan Credit Rating Agency, Ltd.)

4. Outline of the Subordinated Bonds
Although Toyobo plans to determine the detailed terms and conditions of the Subordinated Bonds in
September 2024 and thereafter, the following contents are currently being considered. Once the detailed
terms and conditions are determined, Toyobo will promptly announce them.
For details, please see the amended shelf registration statements submitted today to the Kanto Local
Finance Bureau.
Amount of bond

20.0 billion yen (scheduled)Paid-in date
Maturity date

After September 2024 (scheduled)
After September 2061 (On the date 37 years after the paid-indate) (scheduled)
However, voluntary early redemption is possible on eachinterest payment date after 7 years have passed since thefunds were issued.
Subordinated Bonds preliminary rating BBB (Rating and Investment Information, Inc.)
BBB+ (Japan Credit Rating Agency, Ltd.)
Underwriters

Mizuho Securities Co., Ltd., Nomura Securities Co., Ltd.,SMBC Nikko Securities Inc., Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.
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