Green Bond Fact Sheet

Tess Engineering

Date: 16/01/2020

Issue date: 13-12-2019 Maturity date: 31-07-2040 Tenor: 21Issuer Name

Tess Engineering Co.,Ltd (PRIME2 Green
Project Bond TrustCertificate)Amount Issued

JPY8bn/USD74m

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-FinancialCorporate

Bond Type

N/A

Green Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

R&I (Japan) (GA1)☒ 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
☐ Flood protection☐ 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

TESS plans to provide reporting for the green bond on its website once a year.
Key contents of the reporting are i) fund allocation status reporting, and ii) impact reporting(incl. performance). In particular, TESS:i) plans to report the allocation status to the projects until the funds are fully allocated.
ii) is meant to disclose the amounts of annual power generation and CO 2 reduction of theprojects.
TESS Engineering Co., Ltd. is an engineering company which specializes in “energy saving
and environmental measures” for utility services. It has constructed 583 solar powergeneration systems (with total power generation capacity of 616 MW) as of the end of
September 2019 and possesses a high level of expertise across the solar power generation
business, acting as EPC and O&M service providers (remote monitoring operation, etc.) in
many projects.

Firsts, records andcertifications
Proceeds description

The proceeds from the green bond will be used to acquire completed solar power
plants developed by TESS. The power plants are located in 10 sites in Chiba, Ibaraki,Fukuoka, Miyazaki, Kumamoto, and Kagoshima. It is likely that the plants will include
biomass and wind power generation projects in the future.

Climate Bonds view
Underwriters
Deal comments
Credit Rating
Pricing summary
Investors summary

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