Issuance of Transition Bonds2022/05/18

JERA Co., Inc. (“JERA”) has decided to issue its first-ever transition bonds (JPY 12 billion in 5-year bonds and JPY 8 billion in 10-year bonds), as outlined below.

Transition bonds are used to fund projects that contribute to reducing greenhouse gas emissions in accordance with a company’s long-term strategy to achieve a decarbonized society.

Issuing these transition bonds enables JERA to diversify its sources of funding to accelerate the development of decarbonization technologies such as the use of ammonia and hydrogen. By moving ahead with ESG financing, JERA strives to provide stakeholders with a better understanding of its “JERA Zero CO₂ Emissions 2050” objective and its initiatives to achieve it.

1. JERA Co., Inc. 8th Unsecured Corporate Bond (subject to a limited inter-bond pari passu clause)

（1）Amount of issue	JPY 12 billion
（2）Period	5 years
（3）Coupon rate	0.420% per annum
（4）Denominations	JPY 100 million
（5）Cost	100 yen per par value of 100 yen
（6）Payment receipt date (Issue date)	May 24, 2022
（7）Interest disbursements	May 25 and November 25 of each year
（8）Payback date / Payback schedule	May 25, 2027 / Lump-sum payment at the end of period
（9）Use of proceeds	Expenditures related to projects demonstrating the co-firing of fossil fuels and ammonia/hydrogen Expenditures related to decommissioning inefficient thermal power plants for replacement with high-efficiency thermal power plants
（10）Third-party Assessment Agency	DNV Business Assurance Japan K.K.
（11）Underwriters	Mizuho Securities Co., Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. BofA Securities Japan Co., Ltd. Nomura Securities Co., Ltd.
（12）Structuring Agent	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
（13）Bond Administrator	Sumitomo Mitsui Banking Corporation

2. JERA Co., Inc. 9th Unsecured Corporate Bond (subject to a limited inter-bond pari passu clause)

（1）Amount of issue	JPY 8 billion
（2）Period	10 years
（3）Coupon rate	0.664% per annum
（4）Denominations	JPY 100 million
（5）Cost	100 yen per par value of 100 yen
（6）Payment receipt date (Issue date)	May 24, 2022
（7）Interest disbursements	May 25 and November 25 of each year
（8）Payback date / Payback schedule	May 25, 2032 / Lump-sum payment at the end of period
（9）Use of proceeds	Expenditures related to projects demonstrating the co-firing of fossil fuels and ammonia/hydrogen Expenditures related to decommissioning inefficient thermal power plants for replacement with high-efficiency thermal power plants
（10）Third-party Assessment Agency	DNV Business Assurance Japan K.K.
（11）Underwriters	Mizuho Securities Co., Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Tokai Tokyo Securities Co., Ltd. Nomura Securities Co., Ltd. BofA Securities Japan Co., Ltd.
（12）Structuring Agent	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
（13）Bond Administrator	Sumitomo Mitsui Banking Corporation