Green Bond Fact Sheet

Takasago Thermal Engineering

Date: 23/07/2019

Issue date: 16-07-2019 Maturity date: 16-07-2026 Tenor: 7
Issuer Name

Takasago ThermalEngineering

Amount Issued

JPY5bn/USD46m

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-financial
corporate

Bond Type

UnsecuredGreen Bond Framework

Link to framework

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

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☒ 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

Takasago Thermal Engineering will disclose information on the appropriated funds until theentire amount of the proceeds has been allocated. The entire amount of the proceeds will
be appropriated by March 2020. The company will publish an impact report outlining theeffect of environmental improvement such as reduced GHG emissions and other ESG
indicators once a year until the redemption of the bonds and to disclose progress of theproject until its completion. There will also be a management report after the completion of
the building that the proceeds are used for.
Takasago Thermal Engineering is a Japanese air conditioning equipment construction
company. Headquartered in Tokyo the company employs around 5,000 people andoperates in 11 countries. Takasago Thermal Engineering strives to create value whilst
contributing to a sustainable development aiming for a contribution to shift “the worldtowards a decarbonized society through environmental engineering".

Firsts, records andcertifications
Proceeds description

Climate Bonds view

The proceeds of this instrument will fully go towards the investment for the construction
and related expenses of the “Innovation Center”. The main use of the Innovation Center
will be to conduct R&D and demonstrate experiments for environmental engineering and istherefore expected to have an even larger effect on the reduction of environmental
impacts. This building will be a Zero Energy Building and is planned to receive the LEEDGold certification.
It is great to see another climate bond issuer in the construction space – Japan being one of
two issuing countries and leading the way. We hope this will encourage more issuance inthis field in other countries as well.

Underwriters
Deal comments
Credit Rating

A- (Japan Credit Rating Agency)

Pricing summary•Investors summary

Coupon: 0.27%

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