【NEWS RELEASE】
October 23 2020
SMBC Nikko Securities Inc.

SMBC Nikko Leads First Green Bond Offering by Kanagawa Prefecture

TOKYO, October 23 2020 – Kanagawa Prefecture (Governor of Kanagawa Prefecture: Mr. YujiKuroiwa) announced today the launch of a JPY 5 billion green bond (the “Green Bond”)*1, the firstmunicipal bond to be exclusively used for climate adaptation projects. SMBC Nikko Securities Inc.
(“SMBC Nikko”) acted as the representative of the joint bookrunners and the sole green bondstructuring agent*2.
Kanagawa Prefecture has issued "Kanagawa Climate Emergency Declaration" in order to sharethe sense that the climate is in a state of emergency with municipalities, companies, academia,organizations and citizens. As an effort to adapt to climate change, the Prefecture has formulated
the "Kanagawa Prefecture Flood Control Strategy" based on the Kanagawa Prefecture Anti-Global
Warming Plan. The strategy is meant to strengthen the ability to respond to flooding and is
implemented in a planned and focused manner because it is feared that flooding occurs more
frequently in the future due to large-scale typhoons and torrential rains attributable to climatechange and other global warming effects.
Among a few projects defined in the strategy, those that are focused areas and are expected tohave great improvement in terms of climate adaptation (e.g. developing immediate measures torivers, and improving anti-flood ponds and waterway bottlenecks, coastal conservation facilities,
and sediment disaster prevention facilities) are the use of the proceed of the prefectural bond asGreen Bond and are offered to institutional investors. Through this issuance, the Prefecture tries towidely appeal the importance of these projects and the efforts it takes.
The Prefecture promotes the "Kanagawa Prefecture Flood Control Strategy" as a SDGs effort tocreate “Sustainable Kanagawa where lives of the citizens are protected”.

This material is an English translation of Japanese announcement made on October 23, 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.

SMBC Nikko is actively engaged in identifying financing
needs to address environmental and social issues andpromoting ESG strategies. We are confident that ourengagement as the structuring agent in this bond offering orprojects to cope with large typhoons and heavy rains showcases SMBC Nikko’s experience in thisarea and helps develop ESG finance market in Japan further. Based on the recognition that theglobal environment is our greatest stakeholder, we are committed to leading environment-related
financing, addressing diverse challenges with local communities, and contributing to achieving
SDGs: "Sustainable Cities and Communities (Make cities and human settlements inclusive, safe,resilient and sustainable)", "Climate Action (Take urgent action to combat climate change and itsimpacts)", and "Life on Land (Protect, restore and promote sustainable use of terrestrial
ecosystems, sustainably manage forests, combat desertification, and halt and reverse landdegradation and halt biodiversity loss)".
*1 Green bonds are any type of bond instrument where the proceeds will be exclusively applied to finance or re-finance inpart or in full new and/or existing eligible green projects. Kanagawa Prefecture has established a green bondframework based on "The Green Bond Principles 2018" set by the International Capital Market Association (ICMA)and “The Green Bond Guideline 2020” by the Ministry of Environment of Japan. As a third-party evaluation of thegreen bond framework, Kanagawa Prefecture has obtained second opinions from Rating and Investment Information,Inc.
*2 A company which supports the issuance of green bonds by providing advice on the formulation of a framework forgreen bonds and the acquisition of third-party evaluations such as second party opinions.

2【Outline of the Green Bond】
NameKanagawa Prefecture 5-year public bond (Green Bond) – first seriesTenor

5 year (lump sum redemption at maturity)

Coupon0.020%

Issue amount

JPY 5 billion

Pricing date

October 23, 2020

Payment dateNovember 4, 2020

Redemption date

September 19, 2025

Representative of the joint SMBC Nikko Securities Inc. (Joint bookrunner：Mizuho Securities
bookrunners
Green Bond Structuring
AgentCo. Ltd.)SMBC Nikko Securities Inc.

###Note: This news release is 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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