【NEWS RELEASE】
November 19, 2019
SMBC Nikko Securities Inc.
SMBC Nikko underwrites The Gunma Bank’s Green BondTOKYO, November 19, 2019--- SMBC Nikko Securities Inc. (“SMBC Nikko”) announced that SMBC
Nikko acted as a joint book runner and green bond structuring agent※ to underwrite green bond ofThe Gunma Bank, Ltd. (President, Representative Director: Akihiko Fukai / location of head office:
Maebashi-shi, Gunma; “Gunma Bank”) (the “Green Bond”).
As various environmental and social issues become more critical, Gunma Bank formulated the“Gunma Bank Group SDGs Declaration” (the “SDGs Declaration”) in February 2019 with an aim topromote efforts as a group toward achievement of “the Sustainable Development Goals (SDGs)”
adopted by the United Nations. In the SDGs Declaration, the preservation and creation of global
environment are set as the one of the priority issues for the realization of a sustainable society andthe creation of economic value.
While various companies’ efforts related to ESG is drawing a lot of interests in the society as awhole, Gunma Bank has decided to issue this bond ahead of other regional banks for the purposeof announcing its proactive approach to SDGs to each stakeholder and assisting customers working
to preserve the environment and create a beautiful environment.
2019 Mid-Term Business Plan “Innovation New Dimension”—Toward delivering value, launchedin April 2019 and ending in March 2022, is based on the concept of the SDGs Declaration. Gunma
Bank aims for contribution to the development of regional communities through engagement withthe achievement of the Business Plan.
SMBC Nikko has established a dedicated department—SDGs Finance—and has been actively working on ESG promotion with the aim ofaddressing environmental and social issues through business activities
in the financial and capital markets. We believe that this underwriting will
provide our insight into green bonds and sustainable development goals (SDGs) financing, whileat the same time leading to further expansion of ESG investment and products on ESG themes. Inaddition, through the underwriting of Green Bond, SMBC Nikko will contribute towards achieving
SDGs: “Affordable and Clean Energy” and “Climate Action”.

This material is an English translation of Japanese announcement made on November 19, 2019. 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.

※A green bond structuring agent supports the issuance of green bonds by advising the issuer on formulation of a green
bond framework and on obtaining second-party opinions.

<Outline of The Gunma Bank, Ltd. 5th Issuance of Basel III-compliant Subordinated Bonds(Green Bond) >NameTenorRateThe Gunma Bank, Ltd. 5th Issuance of Basel III-compliant
Subordinated Bonds (Green Bond)
10NC5 years(i) For the first five years (until November 26, 2024):0.37% per annum(ii) thereafter: 6-month Euro-yen LIBOR plus 0.42%

Issue amount

10 billion yen

Pricing dateNovember 19, 2019

Payment dateNovember 26, 2019

Redemption dateNovember 26, 2029

Acquired credit rating

A (R&I), AA- (JCR)

Green bond structuring
agent

SMBC Nikko Securities Inc.

###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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