March 6, 2023
Sumitomo Mitsui Banking Corporation
DP ENGINEERING PLASTICS (NANTONG) CO., LTD. signed first onshore green syndicated loan asJapanese company in China, with the formulation of the "Green Loan Framework" supported by SMBCCN
Sumitomo Mitsui Banking Corporation (China) Limited ("SMBCCN"), the Chinese subsidiary of Sumitomo
Mitsui Banking Corporation ("SMBC", President and CEO: Makoto Takashima) supported DP
ENGINEERING PLASTICS (NANTONG) CO., LTD (President and CEO: Koji Oishi, "DPE") informulating the "Green Loan Framework" ("This framework" (*1）). SMBCCN, mandated as Green
Financial Coordinator (*2), arranged this green syndicated loan ("This loan") under this framework.
A Green Loan is a form of financing that enables companies to finance eligible green projects which
contribute to environmentally sustainable economic activities. It has the following features; (1) proceeds areallocated exclusively to green projects, (2) proceeds are tracked and managed in a reliable manner and (3)transparency is ensured through post-financing reporting.
DPE is a polyacetal ("POM") manufacturing company located at Nantong Economic Development Zone,
Jiangsu Province, China, and was established in January 2022 by P Holdings Inc. (Representative Directorand President: Koji Oishi) as its wholly-owned subsidiary. Meanwhile, P Holdings Inc. was controlled by
POLYPLASTICS CO., LTD. ("Polyplastics", Representative Director and President: Toshio Shiwaku),a
wholly-owned subsidiary of Daicel Corporation (Representative Director and President: Yoshimi Ogawa)and Global Polyacetal Co., Ltd. ("GPAC”, Representative Director and President: Naoto Obayashi , awholly-owned subsidiary of MITSUBISHI GAS CHEMICAL COMPANY, INC., Representative Directorand President: Masashi Fujii) in the shareholding ratio of 70% and 30% respectively. The significant
increase of the DPE’s production capacity contributes to satisfying the Chinese market strong demand for
POM and further contributes to the development of the Chinese economy.
Polyplastics, which is responsible for the overall production and operations, has a following group corporate
philosophy; “We contribute to building an abundant future society by innovation and developing talented
and responsible people, through pursuing the unlimited potential of engineering plastics." To achieve this,Polyplastics is seeking to achieve positive impact through both "Business Activities themselves" and"Narrowly defined CSR".
DPE received a second party opinion for this loan from Hong Kong Quality Assurance Agency ("HKQAA"1(*3)) for its alignment with the Green Loan Principles (revised in 2021) published by Loan Market
Association (LMA), Loan Syndications and Trading Association (LSTA) and Asia Pacific Loan Market
Association (APLMA), and the China Green Industry Guiding Catalogue (revised in 2019) published byNational Development and Reform Commission and People’s Bank of China. The alignment of this loanwith both international and Chinese domestic standards shows the strong commitment to advancing asustainable society through the Polyplastics Group.
On July 27, 2021, SMBC Group published "SMBC Group GREEN Innovator" and aims at enhancing ourservices and products to realize a sustainable society together with our clients. In addition, SMBC willfurther contribute to achieving sustainable society by providing solutions and engaging in dialogue for ourclients’ sustainable management.
[Transaction Summary]The borrower

DP ENGINEERING PLASTICS (NANTONG) CO., LTD.

Sign Day

February 28th, 2023

Lead arranger and

SMBCCN、MUFG Bank (China), Ltd.

Book runner
Agent

SMBCCN

Green Financial

SMBCCN

Coordinator
Financial Advisor

SMBCCNThe Lender

SMBCCN、MUFG Bank (China), Ltd.

Amount:

RMB 2382.38 million yuan

Period:10 years

Loan propose:

The investment of establishing a new POM manufacturing company in theNantong City, Jiangsu Province, China.

Details of the Use of Proceeds:
The use of proceeds will be used for facilities and equipment in a new POM manufacturing company, DPE,with 150,000 ton (expected) POM production capacity. The facility covers about 343.1 acres and is locatedin the east of Road Tong Da and north of Road Hai Ya of the Nantong Economic Development Zone,
Jiangsu Province, China. After importing the latest machines and equipment, the facility will achieve
substantial improvement from an environmental point of view compared to the old plant. The second party
opinion from HKQAA states that this loan is aligned with both international standards and Chinese domestic
standards. The detailed eligible green projects categories are shown as following, "Energy efficiency" and"Sustainable water and wastewater management" in the category of Green Loan Principles, "2.1.4
Transformation of major industries into cleaner production (including the transformation of cleaner
production in chemical industrial parks)" in the category of the China Green Industry Guiding Catalogue.

2（*1） Green Loan Framework
Green Loan Framework is based on the following four core components, Use of Proceeds, Process for ProjectEvaluation and Selection, Management of Proceeds and Reporting.
（*2）Green Financial CoordinatorGreen Financial Coordinator is an organization supporting the borrowers in formulating the framework andother related procedures when organizes and designs this green loan.
（*3）Hong Kong Quality Assurance Agency (HKQAA)HKQAA, established by Hong Kong Government in 1989, as a non-profit distributing pubic body committed
to introducing international management standards, which not only promotes good management practices but
also develops diversified services and optimizes the whole industry level to facilitate the development ofsustainable finance.
(Reference)
DP ENGINEERING PLASTICS (NANTONG) CO., LTD website
https://www.polyplastics-global.com/jp/news/[Contact Information]
Sustainable Solutions Department
TEL：+81-3-4333-2703

This announcement is not intended as a recommendation to invest or solicit.

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