[NEWS RELEASE]May 23, 2019
SMBC Nikko Securities Inc.
SMBC Nikko underwrites the Japan Railway Construction, Transport and Technology
Agency (JRTT)’s Sustainability Bond as a Joint Bookrunner～First Asian CBI Programmatic Certification obtained～

TOKYO, May 23 2019--- SMBC Niiko Securities Inc.(“SMBC Nikko”) announced

that SMBC

Nikko acted as a Joint Bookrunnner to underwrite the Japan Railway Construction, Transport andTechnology Agency (JRTT)’s first Asian CBI ※1 programmatic certified Sustainability Bond (thisbond).
"Sustainability Bond" refers to bonds where the proceeds will be exclusively applied to both (1)Green Projects which contribute to environmental benefit and (2) Social Projects which contribute tosocial benefit.
This bond has obtained a verification report, from a globally renowned third party certification
body, DNV GL※2, and for environmental aspects, a programmatic certification (a scheme whichenable continues issuances of the same type bonds under this certification) from CBI, for first timein Asia, concluding that the bond complies with several international standards※3. The projects
financed by this bond will also contribute to achieving the United Nations Sustainable Development
Goals (SDGs) ※4.
SMBC Nikko has been actively working to identify financing needs and promote ESG that willcontribute to solving environmental and social issues. For example, we established the "SDGs
Finance Dept." within the Capital Markets Division in September last year. We are proud that ourparticipation to the JRTT’s Sustainability Bond which obtained the first CBI programmatic
certification in Asian and which is the first Asian Sustainability Bond will provide insight into
sustainability bonds and SDGs finance, and lead to further development of the SDGs financemarket, including ESG investment and sustainability bonds in Japan. Through the issuance of thissustainability bond, SMBC Nikko will also contribute to the achievement of the SDGs, “Goal 13:
Take urgent action to combat climate change and its impacts, and “Goal 11: Sustainable cities andcommunities”.

This material is an English translation of Japanese announcement made on May 23, 2019. Although the company intended to faithfullytranslate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed and thus you areencouraged to refer to the original Japanese document.

Based on SMBC Nikko’s slogan, "Share the Future", we will continue to focus on our clients,
provide higher value, and deliver trust and confidence.
※1 Climate Bonds Initiative: an international NGO which promotes large scale investment toward low carbon economy.
※2 DNV LG: the third party certification body established in 1864, which has a headquarters in Oslo, Norway.
※3 Climate Bond Standard 2.1 Edition, Low Carbon Transportation Standard (CBI), Green Bond Principles, Social Bond
Principles, Sustainability Bond Guidelines (International Capital Markets Association, ICMA, 2018), etc.
※4 Sustainable Development Goals (SDGs) are the 17 goals and 169 targets that member countries must achieve by
2030 as stated in the "The 2030 Agenda for Sustainable Development" adopted at the United Nations Conference on
Sustainable Development in September 2015.

<Outline of the JRTT CBI Programmatic Certified Sustainability Bond>
Name

125th Japan Railway Construction, Transport and Technology
Agency’s Bond (CBI Programmatic Certified Sustainability Bond)Tenor

5 years

Rate

0.020 %

Issue amount

10 billion yen

Pricing date

May 23, 2019

Payment date

May 30, 2019

Redemption dateJune 20, 2024

Acquired credit rating

AA（R&I）、A1（Moody‘s）

Name

126th Japan Railway Construction, Transport and Technology
Agency’s Bond (CBI Programmatic Certified Sustainability Bond)Tenor

10 years

Rate

0.120 %

Issue amount

10 billion yen

Pricing date

May 23, 2019

Payment date

May 30, 2019

Redemption date

May 30, 2029

Acquired credit rating

AA（R&I）、A1（Moody‘s）

Name

127th Japan Railway Construction, Transport and Technology
Agency’s Bond (CBI Programmatic Certified Sustainability Bond)Tenor

15 years

Rate

0.292 %

Issue amount

13 billion yen

Pricing date

May 23, 2019

Payment date

May 30, 2019

Redemption date

May 30, 2034

Acquired credit rating

AA（R&I）、A1（Moody‘s）
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Name

128th Japan Railway Construction, Transport and Technology
Agency’s Bond (CBI Programmatic Certified Sustainability Bond)Tenor

30 years

Rate

0.634 %

Issue amount

10 billion yen

Pricing date

May 23, 2019

Payment date

May 30, 2019

Redemption date

May 28, 2049

Acquired credit rating

AA（R&I）、A1（Moody‘ｓ）###

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 "Securities
Act"). 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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