Green Bond Fact Sheet

Hitachi Zosen CorporationDate: 28-Sept-2018

Issue date: 21-Sept-2018 Maturity date: 21-Sept-2021 Tenor: 3Issuer Name

Hitachi Zosen
Corporation

Amount Issued

JPY5bn (USD44m)

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-FinancialCorporate

Bond Type

Senior unsecured

Green Bond Framework

Link to Framework

Second party opinion

DNV GL

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ 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 emissionvehicles☐ 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
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☒ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☒ Waste to energy☐ Industry: components☐ Adaptation & resilience☐ 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

The issuer will provide information on the allocation of the net proceeds annuallyduring construction of the eligible projects. Impact reporting will be disclosed after
completion of the eligible projects, the coming April throughout the life of the bond.
Reporting will be published annually on the issuer’s website or annual report.
Hitachi Zosen Corporation is a plant engineering company headquartered in OsakaTekkosho, Japan. It produces waste treatment plants, industrial plants, precision
machinery, industrial machinery, steel mill process equipment, steelstructures, construction machinery, tunnelling machines, and power plants.

Firsts, records andcertifications
Proceeds description

Proceeds will be allocated to financing waste-to-energy generation facilities, withrefinancing being limited to existing projects to be finalized or taken into operation
within the last 24 months. The two eligible projects listed by the issuer as ofSeptember 2018 are the Kyoto South Clean Center EfW project (expected to becompleted in March 2019) and the Energy-from-Waste Plant for Kikuchi
Environmental Preservation Association (expected to become operational in March2021).
Hitachi Zosen has engaged DNV GL to assess whether the financed projects are incompliance with the Green Bond Framework one year after the bond’s issuance.

Climate Bonds view

Underwriters

This is the first green bond issuer from Japan to fully allocate proceeds to WTE
facilities. The issuer has set out a clear reporting framework and has gone a stepfurther by engaging DNV GL to confirm that the financed projects comply with theeligibility requirements. We encourage more issuers to seek for third parties toreview proceed allocations in order to align with best practice transparency
standards.
Mitsubishi UFJ Financial Group, Morgan Stanley Securities

Deal comments
Credit Rating
Pricing summary

BBB+ (JCR)Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign