Green Bond Fact Sheet

Daiken Corporation

Date: 19/09/2019

Issue date: 20-09-2019 Maturity date: 20-09-2022 Tenor: 3
Issuer Name

Daiken Corporation

Amount Issued

JPY5bn/USD46m

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-financial corporate

Bond Type

UnsecuredGreen Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

JCR - Green 1☐ 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☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission
vehicles☐ 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☒ Waste management☒ Recycling☒ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ 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
ReportingIssuer information

The issuer will disclose a summary of the funded eligible projects and the allocated andunallocated amounts until full allocation on its website. The proceeds are expected to be fully
allocated within one year. Furthermore, Daiken plans to disclose several indicators ofenvironmental improvement once a year, until maturity.
Daiken is a major manufacturer of housing materials founded in 1945, focusing on woodprocessed products. Its business activities consist of three segments: Industrial Materials,
Building Materials, and Engineering. The company is trying to improve circular economy
measures through the effective use of waste and unused materials, such as starting from theearly stage of manufacturing insulation boards that reuses waste materials.

Firsts, records andcertifications
Proceeds description

Climate Bonds view

The use of proceeds is for capital investment and refinancing of the funds for the insulation
boards produced by reusing construction waste materials, the "Rock Wool Inorganic Board
produced as a by-product of steel manufacturing of mineral resources, and the DaiLotone
and Dai-Lite (volcanic vitreous double-glaze board) manufacturing plants in Okayama andTakahagi that utilise the unused resource of volcanic soil (Shirasu). The use of proceeds
therefore contributes to the construction of a circular society by reducing and minimisingwaste through the effective use of resources and recycling.”
The creation and implementation of circular economy initiatives is expanding globally, but isstill severely lacking. Only a small portion of green bond proceeds have been allocated toindustrial processes, of which a minority has financed projects related to the circular
economy.
While this is not the first green product to fund such projects in Japan, it is great to see
growth in sustainable industrial projects in the country. We hope this will expand across theregion, especially in China where the potential is immense.

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