November 10, 2023
To whom it may concern,
Name of company:

Toyobo Co., Ltd.

Name of representative:

Ikuo Takeuchi,President & Representative Director(Stock code: 3101, Prime Market of the Tokyo Stock Exchange)
Contact:

Hidekazu Takahashi, General Manager,
Finance Department(TEL +81-6-6348-3137)

Notice of Issuance of Sustainability-Linked Bonds
Toyobo Co., Ltd. (“Toyobo,” hereafter) hereby announces that it plans to issue Sustainability-Linked Bonds(*1) for public offering, and has submitted amended shelf registration statements for corporate bonds to theKanto Local Finance Bureau today (November 10, 2023) for the issuance of Sustainability-Linked Bonds.
1. Aim and Background of Issuance of Sustainability-Linked Bonds
In May 2022, Toyobo predicted change in the future business environment and formulated the Sustainable
Vision 2030, showing the ideal state of the Toyobo Group in 2030, sustainability indices and action plans,
based on its corporate philosophy of “Jun-Ri-Soku-Yu” (adhering to reason leads to prosperity). Identifying
a “decarbonized and circular society” as one social issue requiring a solution, Toyobo has stated that one of
the main sustainability indices to be achieved by 2030 is a 46% or higher (compared with FY 3/14) reductionin the volume of Scope 1 and 2 greenhouse gas (GHG) emissions.
This time, Toyobo has renewed the Sustainability-Linked Bond Framework formulated in February 2023,
and has newly announced this as the Sustainability-Linked Finance Framework. Under this framework,
Toyobo has set targets for each fiscal year up until FY 3/31 for the Sustainability Performance Targets (SPTs*2) and has made it possible to secure a wide range of sustainable financing by supporting financing by not
only bonds but loans as well. Through the issuance of Sustainability-Linked Bonds based on this framework,Toyobo, while allowing the continuation of initiatives aimed at finding solutions for a “decarbonized andcircular society,” will clarify its commitment to these initiatives and promote engagement with a wide rangeof stakeholders.
2. Outline of Sustainability-Linked Bonds(1) Name of the bonds

Toyobo Co., Ltd. 45th unsecured straight bonds (withlimited inter-bond pari passu clause)(Sustainability-Linked Bonds)(2) Issuance amount10.0 billion yen (scheduled)(3) Issuance period

5 years (scheduled)(4) Condition determination date

Scheduled for early in December(5) KPI

1) Ratio of reduction of Scope 1 and 2 GHG emission
intensity to net sales of Toyobo Group2) CDP (*3) score (climate change)(6) SPTs

1) Ratio of reduction of GHG emission intensity tonet sales in FY 3/28 (compared with the base fiscal
year FY 3/21): 35.0%
2) CDP score (climate change) of “A-” or higher inFY 3/28

(7) Date for judging SPTs

The final day of October 2028

(8) Characteristics of the bonds

In the event that neither SPT 1) nor SPT 2) areachieved by the judgment date, Toyobo will purchaseemission credits (credit/bond for the value of CO2reduction) equivalent to 0.1% of the amount of issued
bonds by the redemption of the bonds. In the eventthat Toyobo is unable to select the option ofpurchasing emission credits due to the occurrence ofan inevitable matter, etc. (changes to provisions of
the trading system, etc.), it will donate to qualified
charities (public interest incorporated association,
public interest incorporated foundation, international
institution, local government authorized NPO, local
government or equivalent organization for thepurpose of environmental conservation activities).
The emission credit purchase amount or donation
amount will be equivalent to 0.07% of the amount ofissued bonds if only SPT 1) is not achieved, andequivalent to 0.03% of the amount of issued bonds if
only SPT 2) is not achieved.

(9) External evaluation

Toyobo obtained a third party opinion from theindependent external institution Japan Credit Rating
Agency, Ltd. regarding confirmation that these bonds
conform with the Sustainability-Linked Bond
Principles, Sustainability-Linked Loan Principles,
Sustainability-Linked

Bond

Guidelines,andSustainability-Linked Loan Guidelines. (*4)(10) Lead managers

SMBC Nikko Securities Inc.
Mizuho Securities Co., Ltd.
Nomura Securities Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

(11) Structuring Agent (*5)

SMBC Nikko Securities Inc.

3. Others
As Toyobo’s Sustainability-Linked Finance Framework was announced separately, please refer to that fordetails.
https://www.toyobo.co.jp/ir/doc/sustainabilitylinkedfinance.pdf (in Japanese only)
Furthermore, as the third party opinion from Japan Credit Rating Agency, Ltd. is scheduled to be announced,
please refer to that for details.
https://www.jcr.co.jp/greenfinance/ (in Japanese only, external link)(*1) Sustainability-Linked Bonds
Bonds whose terms vary depending on whether the issuer achieve predetermined sustainability targets. The
bond proceeds do not have to be used for specific purposes necessarily, but the bonds are evaluated based on
key sustainability indices and SPTs determined beforehand by the issuer. The terms change depending onwhether the SPTs have been achieved, thereby motivating the issuer to achieve the SPTs.
(*2) Sustainability Performance Targets
Targets based on the issuer’s key sustainability indices that determine the terms for the issuance ofSustainability-Linked Bonds.
(*3) CDP
International NGO that works on collecting information, etc. in the environmental field, such as climate change.
An eight-tier evaluation is carried out with “A” as the highest rating, followed by A-, B, B-, C, C-, D and D-,
for companies that answer the questionnaires regarding the three activity domains of “climate change,” “water”
and “forest.” From the viewpoint of management risk to companies caused by climate change, information
related to the volume of CO2 emissions and climate change initiatives from major global companies is collectedusing questionnaires, and the collected responses are analyzed and evaluated. By doing this, information
regarding companies’ initiatives is published using common criteria.
(*4) Sustainability-Linked Finance Principles and Guidelines
International Capital Market Association (ICMA). Sustainability-Linked Bond Principles 2023.
Asia Pacific Loan Market Association (APLMA), Loan Market Association (LMA), Loan Syndications andTrading Association (LSTA). Sustainability-Linked Loan Principles 2023.
Ministry of the Environment, Japan. Sustainability-Linked Bond Guidelines/Sustainability-Linked LoanGuidelines 2022(*5) Structuring Agent
Entities that provide support for the implementation of sustainable finance through advice, etc. regarding theformulation of the framework and obtaining external evaluations.