Green Bond Fact Sheet

Sumitomo Forestry Co., Ltd

Date: 17-Sept-2018

Issue date: 27-Sep-2018 Maturity date: 27-Sep-2023 Tenor: 5Issuer Name

Sumitomo ForestryCo., Ltd

Amount Issued

JPY10bn (USD89m)

Country of riskJapan

CBI Database

IncludedIssuer Type1

Non-financialCorporate

Bond TypeConvertible

Green Bond Framework

N/A

Second party opinion

Vigeo Eiris

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ 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
☐ 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
Reporting

The issuer commits to release publicly an annual bond’s reporting until maturity dateof the bond. The first reporting is expected to take place within 12 months after theissuance date. The report is verified by a third party auditor. The issuer commits toreport on use of proceeds (i.e. detailed description of the project, total net proceeds
allocation, share of refinancing) and ex-post estimates of outputs and impacts (i.e.
total size of the forest area (ha), harvested area (ha), replanted area (ha), certified
area (ha), total sustainable wood/timber production volume (tons), carbon stocks innet CO2 amount (tCO2 eq). The issuer is committed to disclose the calculation
methodologies and assumptions for impact indicators.

Company information

Sumitomo Forestry Co., Ltd. engages in timber and building materials, housing,overseas, and other businesses in Japan and internationally. The company’s Timberand Building Materials Business segment procures, manufactures, processes, andsells timber products, including logs, wood chips, processed timber, engineered
wood, etc.; and building materials comprising plywood, fiberboard, processedwood materials, concrete and ceramic building materials, metal building materials,
housing systems and fixtures, etc. Its Housing Business segment is involved in theconstruction, sale, after-sales maintenance, and renovation of detached houses
and multi-unit residences; sale of interior products and spec homes; rental,management, sale, and brokerage of property; contract work for housing exteriors,
garden landscaping, and urban greening; and CAD work and site surveys, etc.
(Bloomberg).

Firsts, records andcertificationsFirst green convertible bond globally. The Stock Acquisition Rights give the option
to bondholders to acquire the company’s common stock. (prospectus)

Proceeds description

The full amount of proceeds will be exclusively allocated to refinance theacquisition of 30,000 hectares of FSC certified timberlands and related assets
which comprise plantation forests in Nelson, New Zealand.

Climate Bonds view

Underwriters

Sumitomo Forestry Co., Ltd has been identified as a fully-aligned issuer under theland use sector in the Climate Bonds latest State of the Market report. It’s great tosee a fully-aligned issuer entering the green bond market and capitalising on thebenefits of the “green” label. As the first green bond with Stock Acquisition Rights,
the deal adds structural diversity to the market.
Daiwa

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