【NEWS RELEASE】
January 29, 2020
SMBC Nikko Securities Inc.
SMBC Nikko Leads Green Bond Offering by Tohoku Electric PowerTOKYO, January 29 2020 --- SMBC Nikko Securities Inc. (“SMBC Nikko”) announced that SMBC
Nikko will serve as the sole bookrunner and green bond structuring agent1 for green bonds issued
by Tohoku Electric Power Co., Inc. (Representative Director and President: Hiroya Harada / locationof head office: Aoba-ku, Sendai; "Tohoku Electric Power") This is the first green bond to be issued
by a former general electric utility.
Tohoku Electric Power aims to develop 2 million kW of renewable energy power generation
facilities, centering on wind power plants, mainly in the six prefectures of Tohoku Region andNiigata prefecture. Funds raised by the green bond will be mainly used for development of thefacilities. The green bond has been verified by a third party to ensure compliance with Green Bond
Principles and several international standards, and Tohoku Electric Power has obtained
certification2 from CBI (Climate Bonds Initiative: An international NGO that sets rigorous standards
for the purpose of ensuring reliability and transparency of green bonds). This is the first time for aformer general electric utility in Japan to be given the certification.
SMBC Nikko has established “SDGs Finance”, a department dedicatedto address environmental and social issues through business activities in
the financial and capital markets, and has been actively working on ESG
promotion. SMBC Nikko believes that this underwriting indicates ourinsight into green bonds and sustainable development goals (SDGs) financing, while at the sametime, leads to further expansion of ESG investment and products in Japan. In addition, through theunderwriting of this green bond, SMBC Nikko will contribute towards achieving SDGs: “Affordableand Clean Energy” and “Climate Action”.
※1 A green bond structuring agent supports the issuance of green bonds by advising the issuer on formulation of agreen bond framework and on obtaining third-party opinions.
※2 Bonds which are verified by a third party to ensure compliance with the Climate Bonds Standard are called Certified
Climate Bonds. The Standard contains rigorous scientific criteria which are consistent with the 2 degrees Celsius
warming limit declared in the 2015 Paris Agreement.

This material is an English translation of Japanese announcement made on January 29, 2020. Although the company intended tofaithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed and thus you
are encouraged to refer to the original Japanese document.

<Outline of the Tohoku Electric Power’s Green Bond >Bond Name
Type of BondThe Series 517 Senior Green Bond of Tohoku Electric Power Co.,Inc.
Statutory preferential rights

Tenor

10 Years (Scheduled)

Issue Amount

5 billion yen (Scheduled)

Date of Issuance

February 2020 (Scheduled)

Lead Bookrunner

SMBC Nikko Securities Inc.

Green Bond Structuring
Agent

SMBC Nikko Securities Inc.
【Verification】
DNV GL Business Assurance Japan K.K. has provided anindependent verification against the following guidelines- ICMA’s Green Bond Principles 2018
- Japan’s Green Bond Guidelines, 2017 (Ministry of the Environment)- Climate Bonds Standard Version 2.1

External Reviews for theGreen Bonds- Wind Sector Eligibility Criteria of the Climate Bonds Standard
Version 1.1- Marine Renewable Energy Criteria- Geothermal Energy and the Climate Bond Standard Version 1.0【Certification:】
The issuer has obtained CBI Certification, set under stringent
standards, through the above verification from DNV GL Business
Assurance Japan K.K.

###Note: This news release s prepared only for publication purposes and does not constitute an offer or sale ofsecurities in Japan and the relevant jurisdiction including the United States. The securities referred to above havenot been and will not be registered under the United States Securities Act of 1933, as amended (the "SecuritiesAct"). The securities may not be offered or sold in the United States absent registration or an exemption fromregistration requirements under the Securities Act.

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