Green Bond Fact Sheet

Shizen Energy Inc.

Date: 19/12/2019

Issue date: 29-11-2019 Maturity date: 30-11-2022 Tenor: 3Issuer Name

Shizen Energy Inc.

Amount Issued

JPY300m/USD3m

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-FinancialCorporate

Bond TypePrivate placement

Green Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

Green1 (JCRA)☒ Energy☒ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

Shizen plans to report on the proceed allocation to investors on a one-off basis at the timeof full allocation, or one year after the issuance. This format was selected as the funds raisedby the bonds will be fully allocated to the development costs of the solar power generation
project within a year from issuance.
Furthermore, the company will disclose specific indicators on the environmentalimprovement effects of the solar power generation project. Since the bond will mature
before the project becomes operational, figures will be reported at issuance using thefollowing KPIs
• CO2 emissions reduction (theoretical values based on output standards)• Amount of power generated (theoretical value based on the output standard)
Shizen Energy was set up in 2011 in the wake of the massive earthquakes in Japan. The
company’s mission is "connecting the blue earth to the future" by accelerating the energy
transition to a 100% renewable-powered planet. Shizen is developing revenue streams in
all areas of the electric power business, including power generation, transmission anddistribution, and wholesaling and retailing. Their goal is to generate 5 gigawatts ofrenewable energy by 2022 and 10GW by 2030, with 1GW exceeded in 2019.

Firsts, records andcertifications
Proceeds description

The proceeds of this private placement will exclusively finance a 20MW solar power plantin Japan’s Kanto region. The construction will begin in 2022 and the plant should become
operational in 2024. Once complete, the solar facility will generate nearly 30,000 MWh ofenergy every year, which will result in annual emission reductions of nearly 15tCO 2.

Climate Bonds view

Shizen Energy’s business, including the green private placement, is contributing to theJapanese Government’s Fifth Strategic Energy Plan (2018). It highlights renewableenergy’s key role in energy security and an economically, socially and environmentallysustainable society through lower reliance on imported energy, job creation and lower
GHG emissions. According to the green bond rating from JCRA, the issuer has been
diligent in taking the key risks into account and committed to being transparent to its
private placement investors.

Underwriters
Deal comments
Credit Rating
Pricing summary
Investors summary1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign